Future of North East Homebase stores still unknown after The Range rescue deal
by Catherine Addison-Swan · ChronicleLiveHomebase has secured a rescue deal after collapsing into administration - but the future of 49 stores and 2,000 workers is still at risk.
The DIY and garden retailer called in administrators on Wednesday, November 13, after owner Hilco had failed to find a buyer for the struggling chain following a decline in sales over the last three years. Immediately after Teneo were appointed as administrators, 70 Homebase stores and the Homebase brand were sold to CDS, the company which owns fellow high street giant The Range.
The move is thought to have secured around 1,600 jobs - but the remaining 49 Homebase stores across the UK that were not included in the rescue deal remain under threat. Administrators are yet to disclose the locations of these stores, but confirmed they will continue to trade as normal for now with no immediate redundancies, as Teneo searches for a buyer.
Homebase has branches across the North East, including in Gateshead's Team Valley, Hexham, Blyth, Alnwick, Berwick and Bishop Auckland. Administrators confirmed customer orders will still be fulfilled "as far as possible", and arrangements will also be put in place to allow gift vouchers to be used.
Damian McGloughlin, CEO of Homebase, said on Wednesday: "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."
He added: "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."
Homebase was bought for £1 by investment firm Hilco Capital in 2018, which introduced a swathe of cost-cutting measures in the subsequent years. But the retail chain struggled as customers cut back on spending amid the cost-of-living crisis and reported an £84.2 million loss last year.
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