CDS Superstores, the owner of The Range and Wilko, has completed its acquisition of Homebase after the DIY retailer collapsed into administration. CDS Superstores has acquired the Homebase brand name, intellectual property, and up to 70 UK stores following the news that Gavin Park, Gavin Maher and Adele Macleod from the financial advisory firm Teneo were appointed as joint administrators of Homebase’s owners, HHGL Limited and Hampden Group Limited.
The move is thought to have saved up to 1,600 jobs across the 70 stores, however questions remain regarding the future of Homebase's remaining 49 stores and the 1,700 employees that work in them.
Damian McGloughlin, chief executive of Homebase, said the last 3 years had been “incredibly challenging” for DIY stores, blaming “a decline in consumer confidence and spending” after the pandemic.
He said: “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."
Homebase was bought for £1 by investment firm Hilco Capital in 2018, but the retail chain struggled as customers cut back on spending during the cost-of-living crisis, and reported an £84.2 million loss last year. In August, Sainsbury’s struck a deal to buy 10 Homebase stores and convert them into supermarkets.
The Range was founded in 1989 by entrepreneur Chris Dawson and has become a major player in the retail landscape selling everything from homewares to DIY products. In 2023, Dawson further expanded his brand portfolio by acquiring the intellectual property assets of the Wilko brand, following the latter’s administration. This acquisition allowed The Range to open new Wilko-branded stores, expanding its consumer reach even further.
The Homebase brand name is set to continue solely online, with Homebase stores to re-open as The Range stores over the coming months.
