Homebase owner starts sales due to interest from The Range

The owner of Homebase is in talks to sell the DIY chain to one of Britain’s biggest retailers, as it prepares for a larger-scale auction of the business it saved six years ago.

Sky News has learned that Hilco Capital, which took control of ailing Homebase in 2018, has been approached by The Range, which has quietly become one of the country’s biggest retail successes, about a deal.

City sources said it was not certain the talks would lead to a deal, but analysts believed that if they did, The Range would likely want to take over the majority of Homebase’s 140 or so stores.

According to an insider, a formal sales process is expected to begin in the coming days, with other potential bidders also being involved.

Hilco acquired Homebase after a disastrous period under the Australian Wesfarmers group, during which the company lost hundreds of millions of pounds.

Other retailers previously mentioned as potential bidders for Homebase include B&M European Value Retail, the London-listed discounter.

The DIY chain has led a nomadic existence, at various times being owned by J Sainsbury and then under joint ownership with Argos as part of Home Retail Group.

Wesfarmers’ move into the UK proved to be an unmitigated failure, with Hilco, owner of retail brands including HMV and Cath Kidston, taking control.

In 2018, Homebase entered into a voluntary arrangement which saw a large number of stores closed, leases renegotiated and around 1,500 jobs lost.

The turnaround investor managed to stabilize the company, but saw its fortunes negatively impacted by the pandemic and the subsequent cost of living crisis.

Following the COVID-19 outbreak, as consumers turned to home improvements, sales initially rose, but more volatile market conditions followed.

However, according to accounts filed with Companies House, Homebase made a loss of more than £40m in 2022, despite last year’s performance reportedly being significantly better.

In addition to its UK operations, Homebase also has operations in Ireland. The two divisions may be sold separately.

The Range is based in Devon and is part of CDS Superstores, which is headed by businessman Chris Dawson.

Last year the company paid £7m to buy the brand and intellectual property rights from Wilko, which had been declared bankrupt.

Since then, Mr Dawson has opened a series of new Wilko stores.

The Range sells homeware, furniture and DIY products through over 200 outlets across the UK.

Mr Dawson opened his first store in Plymouth in 1989.

Nicknamed ‘the Del Boy billionaire’ for the distinctive number plate on his Rolls-Royce Wraith, he has become one of Britain’s most successful retail entrepreneurs.

Hilco and Homebase have been contacted for comment. The Range was unavailable for comment.

Sky News