The Range to acquire up to 75 Homebase stores in pre-pack deal
The Range is lining up an acquisition of up to 75 Homebase stores as part of a pre-pack deal.
Administrators are currently being lined up to handle the sale of dozens of Homebase stores in the hopes that around 1,500 jobs will be saved, Sky News has reported.
Under the terms of the deal, The Range will also take control of Homebase’s brand and ecommerce business, and will bring around 1,600 members of Homebase staff under its management.
This follows The Range’s acquisition of Wilko last year, following the latter’s collapse into administration.
Teneo – which has been seeking a buyer for the embattled homeware chain in recent months – is also expected to find purchasers for around 50 remaining Homebase stores once appointed as administrator.
Insiders told Sky News that interest has been registered by discount food retailers, DIY rivals, and other high street brands.
A sale would mean an end to the six-year ownership of Homebase by Hilco, the retail investor which has previously rescued brands such as HMV. Prior to this, Homebase was owned by Australian group Wesfarmers, which in 2018 launched a company voluntary arrangement leading to the closure of a number of stores and a renegotiation of rent deals.
Earlier this year, a deal was reached to sell 10 Homebase stores to Sainsbury’s for £130m, with the retailer converting them to supermarkets in the near future.