CDS Superstores, the owner of The Range and Wilko, has completed its acquisition of Homebase’s brand name, intellectual property, and up to 70 of its UK stores.
Group chief executive Alex Simpkin confirmed the acquisition, after a day of news reports that a deal was in the offing.
Simpkin said: “We’ve stepped in following the sad demise of the much-loved Homebase brand which has had a long and previously successful history of helping UK households with their DIY projects and gardening needs for over 45-years.
“The Homebase brand will continue to trade online, and the acquired stores will continue to trade as Homebase over the coming months until they are transferred to CDS when they will quickly re-open as The Range superstores.
“These stores will include everything you’d expect from The Range, combined with much broader choice across garden, showroom and DIY categories – retaining the best of the Homebase expertise and heritage. We plan to continue to invest in the Homebase brand, with many initiatives in the pipeline.
“We’re expecting to secure up to 1,600 jobs, with Homebase team members joining the CDS family as part of the 70 store acquisitions. We’re conscious there will be a number of other experienced team members who are facing uncertainty, and we’re committed to prioritising interviews for any vacant positions within our The Range and Wilko brands across the country.
“Following the acquisition of the Wilko brand just over 12 months ago and successfully re-launching several trial stores, we’re now in a position to roll out a significant number of Wilko format stores, along with our existing The Range store opening programme.
“We also have intentions to more than double the store estate size over the next four to five years. Acquiring the Homebase brand enables CDS to access new customers and reach new communities.
“As one of the UK’s fastest growing retailers, CDS continues to seek opportunities to expand its growing portfolio and omni-channel offer.”
The acquisition was first reported by Sky News, which said that while a potential deal would save some 1,500 jobs at Homebase, it had the potential to cost some 1,700.
Teneo, which has been appointed joint administrator for the retailer, is reportedly seeking buyers for the nearly 50 remaining Homebase stores.
Homebase recently sold 11 UK stores to Sainsbury’s and exchanged on a further three, and according to Teneo the remaining 49 UK stores will continue to trade as normal whilst it continues “active discussions with interested parties.”
Earlier, Homebase boss Damian McGloughlin said: “It has been an incredibly challenging three years for the home and garden improvement market. A decline in consumer confidence and spending following the pandemic has been exacerbated by the impact of persistent high inflation, global supply chain issues and unseasonable weather.
“Against this backdrop, we have taken many and wide-ranging actions to improve trading performance including restructuring the business and seeking fresh investment. These efforts have not been successful and today we have made the difficult decision to appoint administrators.
“My priority is and continues to be our team members, and I recognise that this news will be unsettling for them. The sale of up to 70 UK stores to CDS is expected to protect up to 1,600 jobs, and the remaining 49 UK stores will continue to trade as normal while the administrators complete discussions with potential buyers.
“I want to thank our team members and supplier partners from the bottom of my heart for their hard work and commitment over many years.”
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