Kingfisher and M&S are poised to submit offers for Homebase locations, aiming to secure jobs and expand their retail presence.
- Homebase’s recent fall into administration has opened avenues for potential acquisition.
- Kingfisher and M&S target between 20 to 25 Homebase sites, with a decision deadline looming.
- Uncertainty persists regarding whether the number of sites is a combined tally or separate interests.
- Discount retailer Home Bargains also eyes a small number of Homebase sites.
Kingfisher and M&S have expressed interest in acquiring a portion of Homebase’s remaining stores following the retailer’s recent entrance into administration. The move comes as the deadline for submitting acquisition offers arrives, and both companies are poised to make bids for between 20 and 25 sites. Such strategic acquisitions could potentially protect hundreds of jobs that hang in the balance.
The total number of stores that Kingfisher and M&S are interested in remains unclear, as it is not specified if they aim to purchase the sites collectively or if each company plans to acquire 20 to 25 stores individually. Regardless, their involvement in the bidding process signals a significant interest in expanding their presence through Homebase’s existing locations.
Home Bargains has also shown an interest, albeit in a smaller number of stores, adding another contender to the mix of potential buyers. This development comes after CDS (Superstores) International, which owns The Range and Wilko, acquired the Homebase brand and intellectual property earlier in the month. This purchase included up to 70 stores but left around 50 sites and 2,000 jobs uncertain.
In previous years, Homebase faced financial challenges. Hilco Capital, after acquiring Homebase for £1 in 2018, enlisted Teneo to explore various cost-saving measures. This came after the retailer experienced a significant downturn, reporting an £84 million loss for the year ending January 2023, following a previous profit of £30 million. A corresponding drop in sales from £788 million to £701 million compounded their difficulties.
The prospective acquisition of Homebase stores by Kingfisher and M&S could stabilize employment and retail operations for a portion of the beleaguered chain.
