SALE ON
Huge DIY chain launches closing down sale in stores as future of chain still hangs in the balance
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A HUGE DIY chain has launched more closing down sales ahead of Christmas, escalating fears of widespread closures.
Signage announcing closing-down sales and steep discounts has appeared at Homebase shops in Morecambe, Lancaster, and Winchester.
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The same signs were spotted at shops in Loudwater and Worcester just weeks ago.
They read "Store closing. Everything must go. All stock reduced".
Homebase crashed into administration last month, but it was partially rescued by billionaire Chris Dawson, the owner of The Range and Wilko.
Dawson's intervention looked to retain "up to" 70 stores and save 1,600 jobs as well as the Homebase brand, leaving 74 branches and roughly 2,000 employees at risk.
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Just a week later, Teneo, Homebase's administrators placed the 74 stores up for sale.
Although the company established a deadline of November 29 for potential buyers to acquire these branches, it remains uncertain whether any of these stores have been saved.
The closing signs now displayed at Homebase shops in Morecambe and Winchester are unexpected, as these stores were never listed for sale.
It could have been assumed that they were originally set to be rescued by CDS Superstores, the company that owns The Range and Wilko.
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Analysis by The Sun reveals that only 57 stores were not put up for sale and could have been included in CDS' rescue plan.
However, the exact number of stores rescued by CDS still remains a mystery.
Homebase the big sale and its legacy
Teneo and CDS Superstores declined to comment.
At the time it entered administration, Homebase operated 141 stores.
This figure included the 10 stores acquired by Sainsbury's prior to Homebase's collapse.
Once all stores are closed, Sainsbury's will convert the units into new supermarkets.
Hilco Capital, the owner of Homebase, had put the company up for sale in July.
The restructuring firm, which purchased Homebase from Wesfarmers in 2018 for £1, started the formal sale process after being approached by The Range.
What is happening with the CDS rescue deal?
The CDS Superstores buyout saved approximately 1,600 jobs and "up to 70" sites.
Alex Simpkin, chief executive of CDS Superstores, owner of The Range, said at the time: "We've stepped in following the sad demise of the Homebase brand, which has had a long and previously successful history of helping UK households with their DIY projects".
However, the exact number of stores rescued by CDS still remains a mystery.
CDS has confirmed that the Homebase brand will continue to trade online, and any acquired stores will continue to trade as Homebase over the coming months.
Once they are transferred to CDS they will "quickly" re-open as The Range superstores.
CDS Superstores previously acquired the Wilko name and intellectual property after it collapsed into administration last year.
HISTORY OF HOMEBASE
- 1979: Homebase was founded by the supermarket chain Sainsbury's and Belgian retailer GB-Inno-BM
- April 1981: The first store opened in Croydon
- October 1981: The second store opened in Leeds
- 1989: Homebase opened its 50th store in Norwich
- 1995: The chain boasted 82 stores and Sainsbury's acquired all 241 Texas Homecare stores
- 1996-1999: All Texas Homecare stores were converted into the Homebase format
- 2001: Sainsbury's sells Homebase but retains a 17.3% minority stake until 2002
- 2006: Homebase operated as a subsidiary under the Home Retail Group from October 2006 until 2016
- February 2016: Australian retailer Wesfarmers owner of the Bunnings brand, purchased Homebase for £340million
- February 2018: Wesfarmers reported losses relating to the takeover of £57million in the year to June 2017, and soon decided to implement a review of the business
- May 2018: Hilco bought the hardware store chain for just £1
- 2018-2024: Homebase has closed 106 stores since it was taken over by Hilco Capital
Why are DIY chains struggling?
It has been a tricky time for home improvement chains, both large and small.
It comes as shoppers have been cutting back on spending following the pandemic.
Plus, the recent turmoil in the housing market has meant that homeowners aren't as focused on DIY projects as they once were.
In the spring, Kingfisher, which owns B&Q and Screwfix, revealed that annual profits had slumped by more than a quarter.
The company reported a 25.1% drop in underlying pre-tax profits to £568million for the year to January 31, 2024.
Window and door specialist Everest called in administrators in April, leaving customers in the dark about their orders.
Last year, the group had previously cautioned profits would slip after a 36% drop in pre-tax profits from £1billion to £611million in the 12 months to January 2023.
Rival Wickes also reported a 31% fall in profits to £52million on flat revenues of £1.55billion for 2023.
Windows and doors company Safestyle collapsed into administration in October last year.
The company has a manufacturing site in Wombwell, near Barnsley and 42 sales branches and depots across the country.
Flooring retailer Tapi recently struck a multimillion-pound rescue deal to save the Carpetright brand and dozens of stores last month.
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Tapi purchased 54 of the chain's stores and two warehouses in a pre-pack administration deal that saved 300 jobs.
However, the deal did not include 200 other stores which all closed their doors.
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