Homebase on Brink of Administration, Thousands of Jobs at Risk – Scottish Business News

DIY retailer Homebase is reportedly on the verge of administration, putting thousands of jobs at risk across the UK, including nine stores in Scotland. The company has appointed insolvency practitioners from Teneo, and there are reports of a potential buyer circling parts of its 130-store estate.

The potential collapse could result in significant job losses, with up to 1,700 positions at risk. However, a possible buyout by Chris Dawson, owner of The Range, could save around 1,500 jobs if the deal goes through. Dawson is reportedly in talks to purchase as many as 70 Homebase stores, along with the brand and website, in a deal estimated to be worth £30 million.

Homebase has been struggling amid the ongoing cost-of-living crisis, which has seen customers cut back on spending. The chain, which was bought for £1 by investment firm Hilco Capital in 2018, reported an £84.2 million loss last year despite implementing cost-cutting measures.

In August, Sainsbury’s struck a deal to acquire 10 Homebase stores and convert them into supermarkets. Meanwhile, Homebase has declined to comment on the current situation.

If Dawson’s buyout is successful, it will mark another high-profile acquisition for the businessman following his purchase of parts of Wilko after its collapse last year. Speaking to The Daily Telegraph, Dawson said: “We are delighted to be able to save so many stores and jobs and look forward to adding the Homebase brand and subsidiaries to the expanding Range group of companies.”

As Homebase faces an uncertain future, thousands of employees await news on whether their jobs will be saved or lost as part of the restructuring process.