Major DIY chain launches huge closing down sale as it shuts six branches before Christmas

A MAJOR DIY chain has launched a huge closing down sale at several of its stores, which are set to close before Christmas.

Homebase is set to close six stores in December, and shoppers can now take advantage of discounts worth up to 60% at these shops.

Stores in Sutton Coldfield, Bromsgrove, Cromer, Fareham, Newark and Rugby will also close over the busy festive period.

Shoppers visiting the affected stores can now get hefty discounts on everything from kitchens to furniture and homeware.

Shops are now brandishing huge "Store Closing. Everything Must Go" signs.

As far as discounts go, Homebase's Bromsgrove store has slashed the price of new kitchens by 60%.

Shoppers can also get 40% off radiators and solar lighting and 25% off furniture, tiles and wallpaper.

All six stores listed above will close before Christmas in December, though exact dates have yet to be confirmed.

Three more Homebase sites in Derry/Londonderry, Inverurie, and Omagh are also set to close in the coming months, but Homebase hasn't confirmed when this will occur.

All 10 stores were sold to Sainsbury's after the company agreed to acquire them from the DIY chain in August.

Once all stores are closed, Sainsbury's will convert the units into new supermarkets.

The conversion of these sites is anticipated to create approximately 1,000 new jobs.

The acquisition of the stores and refit programme to follow is expected to cost Sainsbury's £130million.

Once they are converted, the shop floor area of the stores will range from approximately 15,000 to 40,000 square feet and will add a total of around 235,000 square feet to its supermarket trading space.

Sainsbury's plans to open the first of these new stores by next summer, marking a significant expansion for the supermarket chain.

Simon Roberts, chief executive officer of Sainsbury's, said last month: "Sainsbury's food business continues to go from strength to strength as we push ahead with our Next Level Sainsbury's plan.

"We have the best combination of value and quality in the market and that's winning us customers from all our key competitors and driving consistent growth in volume market share.

"We want to build on this momentum, which is why we are growing our supermarket footprint."

UP FOR SALE

The sale of these stores follows reports that Homebase's owner is looking to sell the company. 

Hilco Capital, which purchased Homebase from Wesfarmers in 2018 for £1, was believed to have started a formal sale process after being approached by The Range.

Other retailers that have previously shown an interest in Homebase include B&M, the London-listed discount retailer.

It's understood that this sale process is still ongoing.

Homebase currently operates around 144 locations across the UK.

The DIY chain was founded by the supermarket giant Sainsbury's and Belgian retailer GB-Inno-BM in 1979.

The first store opened in Croydon in April 1981 and was located on the Purley Way.

The company steadily grew and, in 1989, opened its 50th store in Norwich.

By 1995, Homebase had 82 stores, and Sainsbury's acquired 241 Texas Homecare stores, which were soon converted into the Homebase format.

Homebase then operated as a subsidiary under the Home Retail Group from October 2006 until 2016.

Australian retailer Wesfarmers and owner of the Bunnings brand purchased Homebase for £340million in February 2016.

However, by February 2018, Wesfarmers reported losses relating to the takeover of £57million in the year to June 2017, and soon decided to implement a review of the business.

In May 2018, Hilco bought the hardware store chain for just £1.

Prior to the Hilco takeover, Homebase had 250 stores at its peak and 11,500 staff.

However, the brand soon returned to profit after it entered a CVA agreement and restructured its business.

Homebase has closed 106 stores since it was taken over by Hilco Capital in 2018.

HOMEWARE CHAINS STRUGGLE

It has been a tricky time for home improvement chains, both large and small.

This is because shoppers have been cutting back on spending following the pandemic.

Plus, the recent turmoil in the housing market has meant that homeowners aren't as focused on DIY projects as they once were.

In the spring, Kingfisher, which owns B&Q and Screwfix, revealed that annual profits had slumped by more than a quarter.

The company reported a 25.1% drop in underlying pre-tax profits to £568million for the year to January 31, 2024.

Window and door specialist Everest called in administrators in April, leaving customers in the dark about their orders.

Last year, the group had previously cautioned profits would slip after a 36% drop in pre-tax profits from £1billion to £611million in the 12 months to January 2023.

Rival Wickes also reported a 31% fall in profits to £52million on flat revenues of £1.55billion for 2023.

Windows and doors company Safestyle collapsed into administration in October last year.

The company has a manufacturing site in Wombwell, near Barnsley and 42 sales branches and depots across the country.

Flooring retailer Tapi recently struck a multimillion-pound rescue deal to save the Carpetright brand and dozens of stores in July.

Tapi purchased 54 of the chain's stores and two warehouses in a pre-pack administration deal that saved 300 jobs.

However, the deal did not include 200 other stores which all closed their doors.