Homebase is set to shut 33 additional stores this month, following the permanent closure of 13 branches in January. The home improvement and garden retailer put 74 stores up for sale in
November after entering administration.
Teneo, the firm overseeing the administration process, confirmed the locations of the latest closures but did not specify exact shutdown dates. Affected stores span across the UK, including Nottingham, Daventry, and Chester.
In November, B&Q secured five Homebase locations, reinforcing its position as the UK’s largest home improvement retailer. Sainsbury’s also acquired ten stores last year and is in talks to purchase three more.
Homebase has assured that all impacted employees have received at least two weeks' notice of their redundancy date. With today’s announcement, around 20 stores remain at risk, though Teneo has yet to provide an official update on their fate.
Homebase’s Struggles in a Competitive Market
Founded in 1980, Homebase became a household name but struggled to compete in a crowded market. The chain was sold for just £1 in 2018 and has since faced ongoing financial challenges, culminating in a reported £84.2 million loss last year.
Hilco Capital, the investment firm that took over, implemented cost-cutting measures, but the retailer has continued to decline, particularly amid the cost of living crisis. Consumers have scaled back on home renovations due to high borrowing costs, despite falling interest rates.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, noted that many consumers have prioritized spending on travel and experiences over home improvements. She also highlighted fierce competition from DIY giants like B&Q and Wickes, as well as the growing presence of online marketplaces such as Temu.
Homebase's position in the "squeezed middle" has left it struggling to attract a dedicated customer base, making it difficult to thrive in today’s competitive retail landscape. Photo by Sebastian Ballard, Wikimedia commons.