Homebase administration update as more closing down sales launched as huge chain confirms takeover of three more sites

THREE more Homebase shops will be transformed into The Range branches, it has been confirmed.

CDS superstores, which owns The Range, agreed to buy around 70 Homebase locations after the DIY retailer fell into administration in November last year.

It has already been confirmed that six locations in Glasgow, Bournemouth, Birmingham Newton Abbot, Felixstowe and Blyth will be The Range stores.

Now it's confirmed three more locations in Leicester, Stroud and Blandford Forum will reopen on January 31.

Closing down sales at Homebase locations including Stroud has led to shoppers asking whether the site was one of the stores being sold to The Range.

The new stores will feature products usually found in The Range but some will also contain "Garden Centres by Homebase".

Others will feature "Kitchens by Homebase" spaces.

CDS plans to open up to 10 of the new-format stores each month, up to a total of 70.

The parent company of The Range and Wilko said the move would see 1,600 staff keep their jobs.

It is also relaunching the Homebase website as part of the deal.

Alex Simpkin, chief executive officer of CDS Superstores, said: "We’re fully committed to retaining the best of Homebase’s heritage while introducing the broader product range and value that customers expect from us as The Range.

“While those Homebase stores acquired by CDS will continue to trade as they are during the transition period, we’re focused on ensuring a seamless transfer of these locations into our new store format, with nine launches now confirmed for this month already."

Homebase crashed into administration last November, but Chris Dawson, owner of The Range rescued up to 70 stores through a pre-pack administration deal.

Mr Dawson also bought Homebase's 40-year-old brand and its website as part of the deal.

However, the offer from The Range meant 74 Homebase branches, employing 2,000 staff, were left at risk of permanent closure unless a buyer stepped in.

A deadline was set of November 29 for potential buyers to acquire the 74 sites but it's still unclear whether any of them have been saved.

Homebase previously confirmed six sites would closed before the end of 2024, including Sutton Coldfield, Bromsgrove, Cromer, Fareham, Newark and Rugby.

Two others in Wales recently launched closing down sales.

Three more Homebase sites in Derry, Inverurie, and Omagh are also set to close in the coming months, along with a branch in Glenrothes near Fife.

Earlier this month, DIY chain rival B&Q said it would buy eight former Homebase stores across the UK and Republic of Ireland (ROI).

Five are based in the UK while the other three are based in the ROI.

What is happening to the Homebase stores not at risk?

The CDS buyout saved approximately 1,600 jobs and up to 70 sites.

Once they are transferred to CDS they will "quickly" re-open as The Range superstores.

We've asked Homebase and CDS for the full list of up to 70 purchased sites but it is yet to confirm.

CDS Superstores also previously acquired the Wilko name and intellectual property after the latter collapsed into administration last year.

Homebase's collapse comes after Hilco Capital, which owns the retailer, put the company up for sale in July last year.

Last August, supermarket giant Sainsbury's agreed to buy 10 Homebase stores.

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

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

RETAIL SECTOR STRUGGLES

The retail sector has struggled in recent years as high inflation coupled with a squeeze on shoppers' finances has seen people with less money to spend in shops.

An increasing trend towards online shopping has seen retailers struggle for footfall through stores as well.

A number of major chains have fallen into administration in recent years.

Wilko, Ted Baker and The Body Shop have all plunged into administration but some stores have been saved in rescue deals.

Pressure on the sector is not expected to abate any time soon either.

The Government announced in its Budget employer National Insurance contributions (NICs) will be hiked in April from 13.8% to 15%.

Fears have been raised the hike will be passed onto shoppers in the form of higher prices and job cuts.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.