CDS deal saves 70 stores as Homebase enters administration

Retailer Homebase has entered administration, with 70 of its stores already sold to the company behind The Range and Wilko. Gavin Park, Gavin Maher and Adele Macleod of Teneo Financial Advisory were appointed as joint administrators of HHGL and Hampden Group, which trade under the Homebase name, on Wednesday (13 November). Immediately following the appointment, 70 UK stores and the Homebase brand were sold to CDS, the company behind The Range and Wilko, a deal expected to secure up to 1,600 jobs.  Homebase recently completed the sale of 11 stores to Sainsbury’s and has exchanged on a further three. The remaining 49 UK stores will continue to trade while the administrators talk with interested parties. Homebase chief executive Damian McGloughlin 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.” Teneo’s Maher added: “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.”