Home and DIY retailer Homebase, which has been owned by turnaround specialist Hilco since 2018, has recently emerged from a major turnaround plan, spearheaded by CEO Damian McGloughlin.
Central to this was a CVA, approved in September 2018, enabling it to close more than 40 loss-making stores and seek rent reductions on an additional 70. The CVA allowed the group to secure working capital facilities of up to £120,000 to fund the turnaround and was completed 18 months ahead of schedule in June 2020.
This has enabled the retailer to embark on a 3-year plan for growth from the end of 2020. This includes investment in new ranges, the store estate and its digital infrastructure. Its website has been revamped in partnership with THG Ingenuity and was relaunched in March 2021 with a host of new features such as in-store ordering, flexible payment options, room planning and specialist advice.
With the restructuring of the business now complete, in late 2020, Homebase embarked on a hunt for new owners to drive the next stage of growth.
Homebase also owns the Bathstore brand, which it acquired out of administration in July 2019 to “considerably strengthen its bathroom proposition”. Bathstore concessions have subsequently been introduced to more than 100 Homebase stores as part of an ongoing refurbishment programme to improve the in-store experience.
Hilco had acquired Homebase for just £1 in June 2018, marking Homebase’s second ownership change in three years. The acquisition was set in motion by former parent company Wesfarmers after being hit with a £454m impairment charge in February 2018, relating to its ill-fated acquisition of Homebase from Home Retail Group.