Homebase rescues Bathstore from administration

The DIY and garden centre business has also acquired Bathstore’s website in a move it said will “considerably strengthen its bathroom proposition”.

Homebase plans to continue operating 44 Bathstore shops and will launch “a significant number” of Bathstore concessions in its larger stores over the next 18 months.

The 90 remaining Bathstore locations not included in the sale will continue to trade “for a number of weeks”, administrator BDO said, while remaining display stock is sold.

The deal comes less than a month after Bathstore collapsed into administration after “several months of difficult trading”.

The latest accounts showed it booked a pre-tax loss of £22m on sales of £141m in the year to July 31, 2017.

Homebase boss Damian McGloughlin said: “We are absolutely delighted to welcome Bathstore into the Homebase family. With a reputation for quality service and excellent products, Bathstore complements Homebase’s reinvigorated range.

“Since the launch of our turnaround plan just over 12 months ago, we have been focusing on reintroducing the popular ranges and products that our customers have been crying out for. Through strong cost management and improved shopkeeping, we are committed to making Homebase the best place to shop for everything you need for your home and garden projects.”

McGloughlin said the turnaround strategy was progressing “ahead of plan” and the business was “on track to break even this year”.

BDO business restructuring partner Ryan Grant said: “In a difficult situation, we have been able to secure the future of the Bathstore brand and the transfer of 44 stores to Homebase to maximise realisations for creditors and protect as many jobs as possible.”