Major update on future of Homebase stores under new owners as three more sites to live on

THE new owners of dozens of Homebase stores have announced a major update with three more sites to live on.

CDS Superstores, trading as The Range and Wilko, has confirmed the next wave of openings for its new format shops.

1

It comes after Homebase crashed into administration in November with CDS acquiring 70 of its stores.

Three former Homebase branches in Newton Abbot, Felixstowe and Blyth will reopen as The Range stores on January 24.

The opening date for three other sites in Glasgow, Bournemouth and Birmingham has already been confirmed as January 17.

CDS Superstores said it plans to roll out up to 10 new superstores each month, up to a total of 70 branches, securing 1,600 jobs.

It also said it is prioritising retaining and transferring team members who previously worked for Homebase.

Alex Simpkin, group chief executive officer, said: "We’re fully committed to retaining the best of Homebase’s heritage while introducing the broader product range and value that customers expect from us as The Range.

“While those Homebase stores acquired by CDS will continue to trade as they are during the transition period, we’re focused on ensuring a seamless transfer of these locations into our new store format, with six launches now confirmed for January 2025 already."

The new format The Range stores will feature products usually found in its stores but some will also contain "Garden Centres by Homebase".

Others will feature "Kitchens by Homebase" spaces.

Homebase crashed into administration last November with Chris Dawson, owner of The Range, rescuing 70 stores through a pre-pack administration deal.

Mr Dawson also bought Homebase's 40-year-old brand and its website as part of the deal.

However, the offer from The Range meant 74 Homebase branches, employing 2,000 staff, were left at risk of permanent closure unless a buyer stepped in.

A deadline was set of November 29 for potential buyers to acquire the 74 sites but it's still unclear whether any of them have been saved.

Homebase has already confirmed six sites will close before the end of the year, including in Sutton Coldfield, Bromsgrove, Cromer, Fareham, Newark and Rugby.

Two others in Wales have launched closing down sales.

Three more Homebase sites in Derry, Inverurie, and Omagh are also set to close in the coming months, along with a branch in Glenrothes near Fife.

What is happening with the Homebase stores not at risk?

The CDS buyout saved approximately 1,600 jobs and up to 70 sites.

Alex Simpkin, chief executive of CDS Superstores, owner of The Range, said at the time: "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."

He confirmed that the Homebase brand will continue to trade online, and the acquired stores will continue to trade as Homebase over the coming months.

Once they are transferred to CDS they will "quickly" re-open as The Range superstores.

We've asked Homebase for the full list of stores purchased by CDS Superstores and will update readers once this has been announced.

CDS Superstores also previously acquired the Wilko name and intellectual property after it collapsed into administration last year.

Homebase's collapse comes after Hilco Capital, which owns the retailer, had put the company up for sale in July.

Last August, supermarket giant Sainsbury's agreed to buy 10 Homebase stores.

Once all stores are closed, Sainsbury's will convert the units into new supermarkets.

The acquisition of the stores and refit programme to follow is expected to cost Sainsbury's £130million.

RETAIL SECTOR STRUGGLES

The retail sector has struggled in recent years as high inflation coupled with a squeeze on shoppers' finances has seen people with less money to spend in shops.

An increasing trend towards online shopping has seen retailers struggle for footfall through stores as well.

A number of major chains have fallen into administration in recent years.

Wilko, Ted Baker and The Body Shop have all plunged into administration but some stores have been saved in rescue deals.

Pressure on the sector is not expected to abate any time soon either.

The Government announced in its Budget employer National Insurance contributions (NICs) will be hiked in April from 13.8% to 15%.

Fears have been raised the hike will be passed onto shoppers in the form of higher prices and job cuts.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories