Kingfisher and M&S show interest in acquiring Homebase stores, aiming to salvage jobs amidst the retailer’s administration crisis.
- Both companies are reportedly set to submit offers for 20 to 25 Homebase sites by the deadline set today.
- The exact number of stores each retailer is interested in remains unclear, as is whether the figure is combined.
- Home Bargains also reportedly seeks to acquire a small number of Homebase locations.
- The administration of Homebase left approximately 50 stores and 2,000 jobs at risk after a significant financial downturn.
Kingfisher and Marks & Spencer have set their sights on acquiring the remaining Homebase stores after the British DIY retailer entered administration last month. The companies have until today to submit their formal offers, according to a report by Sky News. The potential acquisitions could safeguard hundreds of jobs if the deals proceed as anticipated.
Details regarding the exact number of Homebase stores each company is interested in acquiring remain unspecified. Reports indicate a combined total of ‘between 20 and 25 sites’ are being considered, though it is uncertain if this reflects the interest of each entity or a collective figure. The exact intentions of Kingfisher and M&S regarding these sites remain a key point of discussion.
Furthermore, it is noted that Home Bargains, a major player in the discount retail sector, has also expressed interest, albeit in a smaller quantity of stores. This development adds another dimension to the unfolding narrative concerning the future of Homebase outlets.
Earlier this month, CDS (Superstores) International acquired the Homebase brand, intellectual property, and up to 70 stores, leaving approximately 50 stores unclaimed and 2,000 jobs in a precarious position. This transaction followed Hilco Capital’s decision to engage Teneo in exploring cost-saving measures after reporting an £84 million loss for Homebase in the 2023 financial year, a stark contrast to a £30 million profit the previous year.
Sales at Homebase fell from £788 million to £701 million during this period, illustrating the retailer’s challenging fiscal landscape. The ongoing interest from these major British retailers underscores a strategic effort to capitalise on existing assets and potentially turn around a struggling brand.
The potential acquisitions by Kingfisher and M&S, alongside interest from Home Bargains, could provide a much-needed opportunity to stabilise Homebase’s future and preserve jobs.
