Homebase, the beleaguered DIY and home improvement retailer, has officially entered administration, casting doubt over the future of thousands of employees.
Despite this, CDS Superstores, the parent company of The Range and Wilko, has stepped in to acquire 70 of its stores, along with the brand and its intellectual property, potentially safeguarding up to 1,600 jobs.
However, the fate of the remaining 49 stores (including four in Northern Ireland) and approximately 2,000 employees hangs in the balance. The administrators are currently in discussions with potential buyers, aiming to secure further sales in the upcoming weeks.
The four Northern Ireland stores at risk include those at The Junction Retail & Leisure Park, Antrim; Shane Park, Belfast; Rushmore Retail Park, Craigavon; and Drumkeen Complex, Belfast.
Teneo's Gavin Park, Gavin Maher, and Adele Macleod have been appointed as joint administrators for Homebase's parent companies, HHGL Limited and Hampden Group Limited. The acquired stores will continue to trade under the Homebase name until they transition into The Range superstores.
The Homebase online platform will remain operational, ensuring that the brand's digital presence persists.
In the interim, there will be no immediate layoffs, and employee wages and benefits will continue to be paid. Efforts are also underway to ensure that customer orders are fulfilled and gift vouchers can still be used, providing some relief to consumers.
Damian McGloughlin, CEO of Homebase, acknowledged the severe challenges the company faced, stating:
"It has been an incredibly challenging three years for the home and garden improvement market. Despite our extensive efforts to restructure and attract new investment, we've not been able to turn the tide."
Gavin Maher from Teneo expressed a cautious optimism about the situation, saying:
"We appreciate that this is a very difficult and uncertain time for all involved. The sale to CDS preserves the Homebase brand and secures a significant number of jobs. We hope to finalize additional store sales in the coming weeks."
This development marks a significant shift in the UK's retail landscape, with implications for both the workforce and the market dynamics of home improvement retail.