A major DIY chain with more than 150 branches “could be put up for sale” again after closing 93 stores.
Homebase could be put up for sale, with talks reportedly held with potential buyers including major discounters.
Hilco Capital, which bought the ailing chain in 2018 for just £1, has held talks with The Range and B&M about a sale, according to the Times.
This is the second time in the last four years that the chain has been put up for sale.
Homebase's brand name, intellectual property, and 170 stores could reportedly be “dismantled and sold” under new ownership.
The company operates approximately 150 Homebase stores and owns approximately 15 Bathstore stores, a specialty bathroom retailer.
The company also owns a number of Decorate by Homebase stores, which are smaller high street versions of its flagship stores.
Sources who spoke to the Times said Hilco had “extracted the desired value” from the chain and is now said to be looking to sell it.
However, it is important to note that nothing has been confirmed and it is understood that there is currently no formal sales process in place.
Just because the ownership has changed doesn't mean things will change immediately for the chain.
The chain has closed 93 stores since being acquired by Hilco Capital in 2018.
Hilco bought the hardware store chain for £1 from Australia's Wesfarmers, which in 2016 paid £340 million for the deal, which was called one of the “most disastrous acquisitions we've ever seen.” Paid pounds.
Wesfarmers is known for its Bunnings chain in Australia. I wanted to turn Homebase into my own DIY brand.
Before the Hilco acquisition, Homebase had 250 stores and 12,000 staff at its peak.
After Hilco took over, Homebase entered into a corporate voluntary arrangement (CVA) and restructured its business over approximately 18 months. It quickly returned to profitability.
Hilco is putting the business up for sale for the first time since acquiring it in 2020.
Osmond Capital, owned by wealthy businessman Hugh Osmond, was reported to have made a £300m takeover offer, but nothing materialized.
In Homebase's last available financial results for the year to December 2021, the brand made an operating profit excluding exceptional items of £63.7m on sales of £788.2m.
A Homebase spokesperson said, “There are no active conversations to sell Homebase.''
B&M declined to comment on the matter.
The Sun has also contacted Hilco Capital and The Range for comment and will update this article when we hear back.
Back in November, Homebase announced the closure of two stores.
The company has pulled down the shutters on its store at Marsh Mills Retail Park in Plymouth and its premises in Banbury.
The company also closed its O2 Center store on London's Finchley Road in December.
This follows the retailer's closure of its Newport store in South Wales in September.
Last year, both B&M and The Range bought parts of Wilco after the business collapsed.
B&M has acquired up to 51 stores from its rivals in a £3 million deal and converted them into B&M.
Wilco's name and intellectual property was acquired by rival discounter The Range earlier this summer.
CDS Superstores, which operates as The Range and Wilko, revealed in December that it would relaunch the chain across Britain's high streets.
What else is happening on the boulevard?
Retailers have been feeling the squeeze since the pandemic as shoppers cut back on spending amid rising costs of living.
Rising utility costs and the shift to online shopping after the pandemic have also taken a toll, leaving many downtown stores struggling to stay open.
The thoroughfare has experienced a large number of closures over the past year, with more on the way.
Several major brands went bankrupt in 2023, including Wilko and Paperchase.
The Homebase news comes just weeks after The Body Shop fell into administration.
Last week, it announced it would close nearly half of its 198 stores.
Seven branches in London will close with immediate effect, including stores in Surrey Quays and Oxford Street.
In early February, it was reported that Hobbycraft owner Bridgepoint was considering “strategic options” for the business.
These options may include putting retailers up for auction.
In January, struggling fashion brand Superdry was reportedly considering a major restructuring, including closing stores and cutting staff, and is considering various cost-cutting options. said.
The company was working with advisers from PwC on plans that could lead to a CVA or another form of restructuring.
Such a move could lead to store closures and force landlords to reduce rent.
More store closures
Boots is set to close 10 more stores in the coming weeks.
The move by health and beauty retailer Boots is part of a plan to close 300 stores.
Matalan closed one of its branches in Leeds on February 24th.
High street designer brand Kurt Geiger has pulled down the shutters of its Brighton store.
Department store Fenwick also closed its London flagship store on Bond Street on February 3.
Lidl will pull down the shutters on its site in Thornaby on February 29th.
High street fashion chain Peacocks pulled down the shutters on its branch in Bury St Edmunds, Suffolk, last month.
Entertainment retailer HMV also closed its branch in Boston, Lincolnshire on January 27th.
The hospitality industry has also been hit, with pubs such as Wetherspoons and restaurants such as Frankie & Benny's and Chiquito closing.
Additionally, a total of 29 bank branches are scheduled to close by the end of this month.
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