Homebase bought out of administration but 2,000 jobs remain at risk

ITV News Business and Economics Editor Joel Hills explains what went wrong for Homebase and what might happen next

Homebase has been sold to retailer CDS in a rescue deal saving up to 1,600 jobs across 70 chains - but around 2,000 jobs and 49 stores remain at risk.

The DIY retailer was reportedly lining up insolvency experts from Teneo on Wednesday and heading for potential administration before CDS - which owns The Range and Wilko - bought the chain.

The deal with CDS has secured around 70 of Homebase's 130 stores. Teneo has said the remaining 49 stores will continue with business as usual while administrators find a buyer.

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The jobs still at risk include workers at Homebase’s head office in Milton Keynes, as well as the remaining stores.

Damian McGloughlin, chief executive of Homebase, said the last three years had been “incredibly challenging” for DIY stores, blaming “a decline in consumer confidence and spending” after the pandemic.

“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.”

Homebase has struggled financially in the past few years. In 2018, Hilco bought Homebase for £1 billion and brought in a series of cost-cutting measures.

The chain reported a loss of £84,2 million in 2023, citing customers' dwindling spending during the cost of living crisis.

In August, Sainsbury's bought ten of the DIY stores to convert them into supermarkets.

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