Full statement as Homebase enters administration with five West Midlands stores at risk of closure

Home improvement retailer Homebase has entered administration, with 2,000 jobs at risk and 49 stores - including some in the West Midlands - also at risk of closure. Up to 70 Homebase stores have been sold to The Range, a move which is expected to secure around 1,600 jobs.

Administrators have been appointed following a decline in sales over the past three years. Damian McGloughlin, CEO of Homebase, said there's been a backdrop of 'declining customer spending' following the pandemic, alongside 'high inflation, global supply chain issues and unseasonable weather'.

Homebase, which was founded in 1979, employs 3,600 staff across its stores and head office. Among the 49 stores at risk of closure include Birmingham, Oldbury, Wolverhampton, Cannock and Telford, according to reports.

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These stores will continue to trade as normal while administrators continue discussions with interested parties. The chain had recently completed the sale of 11 UK stores to Sainsbury’s.

Homebase said there will not be any 'immediate' redundancies. Employee wages will continue to be paid for their period of employment and customer orders will still be fulfilled 'as far as possible', said the company. Arrangements will also be put in place to allow gift vouchers to be used.

Damian McGloughlin, CEO of Homebase, said: "It has been an incredibly challenging three years for the home and garden improvement market. A decline in consumer confidence and spending following the pandemic has been exacerbated by the impact of persistent high inflation, global supply chain issues and unseasonable weather.

"Against this backdrop, we have taken many and wide-ranging actions to improve trading performance including restructuring the business and seeking fresh investment. These efforts have not been successful and today we have made the difficult decision to appoint administrators.

"My priority is and continues to be our team members, and I recognise that this news will be unsettling for them. The sale of up to 70 UK stores to CDS is expected to protect up to 1,600 jobs and the remaining 49 UK stores will continue to trade as normal while the administrators complete discussions with potential buyers. I want to thank our team members and supplier partners from the bottom of my heart for their hard work and commitment over many years."

Gavin Park, Gavin Maher and Adele Macleod of Teneo Financial Advisory Limited have been appointed as joint administrators of HHGL Limited and Hampden Group Limited, which trades under the name Homebase.

Mr Maher said: "We appreciate that this is a very difficult and uncertain time for all involved. The sale to CDS preserves the Homebase brand and secures a significant number of jobs and we hope to complete sales of additional stores over the coming weeks.

"The remainder of the stores will continue to trade whilst buyers are sought and we would encourage any party with an interest to get in touch. We thank Homebase’s team members and other stakeholders for their continued support."