HOMEBASE stores across Dorset are at risk of closure as the struggling business is set for administration.
The DIY retailer is reportedly lining up insolvency practitioners at the Teneo consultancy, which could see it placed into administration.
There are three stores in Dorset including at Redlands in Poole Road, Branksome, Bailey Drive in Christchurch and in Stour Park, Blandford.
Retail magnate Chris Dawson, who owns The Range homeware outlets, is also reportedly planning a last-minute rescue deal which could see him buy as many as 70 Homebase stores.
If the buyout deal goes ahead, it could see about 1,500 jobs saved, but at least 1,700 others would still be in doubt, Sky News reported.
Homebase was bought for £1 by investment firm Hilco Capital, which has since brought in a swathe of cost-cutting measures.
But the retail chain has struggled as customers cut back on spending amid the cost-of-living crisis, and reported an £84.2 million loss last year.
In August, Sainsbury’s struck a deal to buy 10 Homebase stores and convert them into supermarkets.
Homebase declined to comment, while Teneo and The Range have been contacted for comment.
It comes after a hunt for a buyer from Homebase’s current owners which is thought to have lasted for the last two months.
Mr Dawson is also in talks to buy Homebase’s 40-year-old brand and its website, in a deal which could cost about £30 million.
The businessman, whose CDS Superstores acts as parent company to The Range, bought parts of high street retailer Wilko after it collapsed last year.
Homebase closed its Mallard Road Retail Park site in 2019 after the firm failed to reach agreement to reduce the rent bill of nearly £1million a year.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel