Homebase, the well-known DIY retailer, may soon have a new owner as talks have begun about a potential sale to one of Britain’s largest general merchandise chains. Hilco Capital, who took over the struggling company in 2018, has been approached by The Range, a rising star in the retail industry.
Sources close to the matter have confirmed that discussions have taken place, but it is not yet certain if a deal will be reached. However, analysts believe that if an agreement is made, The Range will likely acquire the majority of Homebase’s approximately 140 stores. A formal sale process is expected to begin in the coming days, with other interested parties being invited to participate.
Hilco acquired Homebase after a tumultuous period under the ownership of Australian group Wesfarmers, which resulted in significant financial losses. Other potential bidders for Homebase have been suggested in the past, including London-listed discount retailer B&M European Value Retail.
Homebase has had a complex history, previously owned by J Sainsbury and later becoming part of Home Retail Group alongside Argos. The ill-fated venture by Wesfarmers prompted Hilco – a well-known turnaround investor with experience in brands such as HMV and Cath Kidston – to take control of the company. In 2018, Homebase underwent a company voluntary arrangement, resulting in the closure of several stores, rent negotiations, and job cuts of approximately 1500 employees.
While Hilco was successful in stabilizing the company, the pandemic and subsequent economic crisis had a significant impact on its performance. Although there was an initial surge in sales due to consumers focusing on home improvement during lockdowns, market conditions have since become more challenging. According to Companies House, Homebase reported a loss of over £40m in 2022, although its performance in the previous year was significantly better.
Homebase also has a presence in Ireland, and it is possible that the UK and Irish divisions could be sold separately. The Range, based in Devon, is a part of CDS Superstores, owned by businessman Chris Dawson. Last year, The Range purchased the brand and intellectual property assets of Wilko for £7m after it went into administration. Mr. Dawson has since opened several new Wilko stores.
With over 200 outlets across the UK, The Range sells a variety of homewares, furniture, and DIY products. Mr. Dawson, nicknamed the ‘Del Boy billionaire’ due to his Rolls-Royce Wraith’s distinct number plate, has become one of Britain’s most successful retail entrepreneurs.
Sky News reached out to Hilco and Homebase for comment, but neither has responded at the time of writing. The Range could not be reached for comment.
