Future uncertain for Homebase staff in Christchurch after CDS buys out beleaguered retailer

THE future is still uncertain for staff working at Homebase in Christchurch after the national retailer was bought out in an eleventh hour rescue deal.

The Bailey Drive store is one of 49 sites that could still be at risk nationwide after retail group CDS bought out the Homebase brand last week.

CDS claims the rescue deal has secured up to 1,600 jobs and 70 stores, but the future remains uncertain for some 2,000 Homebase staff at 49 locations, possibly including Christchurch.

Last Wednesday, Homebase appointed administrators from consultancy Teneo before CDS - which owns The Range homeware outlets - bought the majority of its stores out of administration.

A spokesperson for Teneo said the remaining 49 UK stores that are still at risk will continue to trade as normal while administrators try to find a buyer.

It is unclear which stores will remain branded as Homebase after the deal, while administrators did not immediately disclose the locations of the 49 outlets not included in the deal.

The administrators said all employee wages and benefits will be paid for their period of employment, while customer orders will still be fulfilled as far as possible.

Homebase chief executive Damian McGloughlin said the last three years of trade had been “incredibly challenging” for DIY stores, blaming a “decline in consumer confidence and spending” after the pandemic.

“Against this backdrop, we have taken many and wide-ranging actions to improve trading performance including restructuring the business and seeking fresh investment,” he said. “These efforts have not been successful and…we have made the difficult decision to appoint administrators.”

Homebase, which has been running for more than 40 years, was bought for £1 by investment firm Hilco Capital in 2018, which introduced a swathe of cost-cutting measures in the subsequent years.

But the retail chain struggled as customers cut back on spending amid the cost-of-living crisis, and reported an £84.2million loss last year.

In August, Sainsbury’s struck a deal to buy ten Homebase stores and convert them into supermarkets.

The latest rescue deal comes after a hunt for a buyer from Homebase’s previous owners Hilco, which is thought to have lasted for the last two months.

CDS, owned by retail magnate Chris Dawson, bought out Homebase after it also bought parts of high street retailer Wilko following its collapse last year.