The Range nearing deal to snap up chunk of Homebase - report

13th Nov 2024 09:56

(Sharecast News) - The Range is reportedly closing in on a deal to snap up a large chunk of Homebase which will save close to 1,500 jobs but raise doubts about at least 1,700 more.

According to Sky News, administrators are being lined up to handle a pre-pack sale of scores of Homebase stores amid hopes that a significant number of the company's remaining jobs can be salvaged.

The deal with The Range, which is expected to take place on Wednesday, will involve the purchase of up to 75 stores, including Homebase's Irish shops.

The Range is also taking over Homebase's brand and ecommerce business, and will take on around 1,600 of the DIY chain's employees.

Sky said that Teneo, which has been running a sale process in recent months, is expected to seek buyers for nearly 50 remaining Homebase stores once it is appointed as administrator.

Interest is already said to have been registered by discount food retailers, DIY rivals and other high street brands, according to insiders.

The sale will bring an end to the six-year ownership of Homebase by Hilco, the retail investor which previously rescued brands including HMV, where it has led an unexpectedly successful revival of a business which looked set to disappear from Britain's retail landscape.

Homebase was previously owned by Australian group Wesfarmers during which time it lost hundreds of millions of pounds and threatened to collapse altogether.

The Range trades from more than 200 outlets across Britain selling homewares, furniture and DIY products.