Homebase

British DIY retail chain, 1981 to 2025

This article is about the original British home improvement and garden centre retailer that traded from 1981 to 2025. For its successor operating online and as a concession within The Range stores, see Homebase (brand). For other uses, see Homebase (disambiguation).

Homebase

Industry| Home improvement and garden centre retailer
Founded| 3 March 1981 (1981-03-03)
Defunct| 22 March 2025 (2025-03-22)
Fate| Administration
Products|

* DIY tools
* Paint & decor
* Outdoor living
* Kitchens
* Bathrooms
* Gardening

Homebase was a British home improvement and garden centre retailer that operated across the United Kingdom and Ireland.

It was founded by British supermarket chain Sainsbury's and Belgian retailer GB-Inno-BM in March 1981, as Sainsbury's Homebase. By the end of the 1980s, it opened its fiftieth store, making it the UK's fourth biggest home improvement retailer.[1]

The retailer purchased rival Texas Homecare in January 1995, which helped grow its market share to third place, behind B&Q and Focus-Wickes.[2][3] In 1999, it was renamed to Homebase, and then sold to Schroder Ventures in December 2000. In November 2002, it was sold to Argos Retail Group, which later became Home Retail Group in October 2006.

In January 2016, Wesfarmers purchased Homebase in a botched attempt to convert the stores to its Bunnings Warehouse format, ultimately losing £1 billion in total.[4] In August 2018, Homebase was sold to restructuring firm Hilco for £1. Subsequently, Hilco announced that it would close 42 of the chain's stores, and cut 1,500 jobs through a company voluntary arrangement (CVA), in an attempt to return it to profitability. By February 2020, Homebase had 164 outlets and had returned to profitability earlier than expected, with Hilco listing the retailer for sale in November 2020.[5]

In November 2024, Hilco placed Homebase into administration with 3,446 jobs and 135 stores at risk. CDS Superstores acquired the Homebase website, brand and at least 48 of its stores to convert as The Range, with another 22 locations marked as possible option stores.[6] B&Q acquired eight stores in the UK and Ireland, as well as Wickes acquiring four UK stores.[7][8] At midnight on 21 January 2025, Homebase's website was re-established by CDS Superstores, and the final four original Homebase stores closed down on 22 March 2025.[9]

## History

[edit]

### Sainsbury's ownership

[edit]

Homebase's concept was created by the supermarket chain Sainsbury's and Belgian retailer GB-Inno-BM in 1979. The goal was to bring a supermarket style layout to the British Do It Yourself (DIY) market. The first actual store was in Croydon, opening on 3 March 1981, located on Purley Way, originally as Sainsbury's Homebase.[10]

Early in its history, Homebase used its Sainsbury's experience to move into using central warehouses from which to deliver its stock. By the 1990s, it was receiving the vast majority of its stock into central warehouses, then delivering it to stores.

Homebase tripled in size in January 1995, when Sainsbury's bought rival store group Texas Homecare from Ladbrokes.[11] These stores were rebranded and converted to the Homebase format, beginning in February 1996, with the store in Longwell Green, Bristol. The transformation was completed by 1999.

By the time of the purchase, Texas had staff totalling 11,600, and Homebase had 4,500.[12]

In October 1999, Sainsbury's bought Hampden Group, the franchisee of ten Homebase stores in Ireland.

From 1999, Homebase used former Men Behaving Badly couple Neil Morrissey and Leslie Ash as a couple. Morrissey and Ash were the face of the brand for six years, until March 2005.

In August 2000, the former chief executive of Texas Homecare, Ron Trenter, made an ultimately unsuccessful bid for Homebase.[13] In September 2000, Focus Do It All considered acquiring Homebase, but instead decided to acquire Great Mills.[14] The next month, Home Depot joined the race to acquire Homebase,[15] but was not successful.

### Schroder Ventures ownership

[edit]

A branch of Homebase in Longford, Ireland.

On 22 December 2000, Sainsbury's sold the Homebase chain in a two-part deal worth £969 million: in March 2001, the sale of the chain of 283 stores to venture capitalist Schroder Ventures[16] generated £750 million, and the sale of 28 development sites to Kingfisher plc, parent of Homebase rival B&Q, generated £219 million. At the time, the chain had 13% of the market in the United Kingdom, with 283 stores and 17,000 employees, behind B&Q and Focus Do It All.[17]

### Argos / Home Retail Group ownership

[edit]

A branch of Homebase in Antrim, Northern Ireland.

In November 2002, Homebase was sold to Argos Retail Group (ARG), a subsidiary of GUS plc, for £900 million.[18] In October 2006, GUS demerged Experian and renamed Argos Retail Group to Home Retail Group.[19]

In March 2005, Homebase launched a series of new television advertisements created by AMV BBDO, featuring the new slogan "Make a house a home."[20] From 2005 to 2008, these adverts used the song "Love Machine" by Girls Aloud. From 2007 to 2008, "Orinoco Flow" by Enya was used. From 2009 to 2013, "Young Folks" by Peter Bjorn and John featuring Victoria Bergsman was used.

In October 2007, Home Retail Group agreed the purchase of 27 leasehold properties from Focus DIY, to be bought for £40 million in cash. The properties were transferred over the period up to 31 December 2007, and were then refitted to the Homebase fascia over the course of several months.

No other infrastructure, and no merchandise stock were acquired as part of the transaction, although staff in these Focus stores transferred to Homebase.

In May 2009, Homebase discontinued its loyalty programme, the Spend & Save Card, and replaced it with the Nectar loyalty card scheme,[21] the United Kingdom's largest retail loyalty card. The Spend & Save card had been operated by Homebase since 1982, and was believed to be one of the first store loyalty cards in the world.[22]

In July 2013, Home Retail Group said the stores in Ireland had not made a profit in the previous five years, and that it intended to close three of the fifteen.[23]

A branch of Homebase in Leeds, inclusive of an Argos concession. This hybrid format had been introduced in 2014.

In April 2013, Homebase faced criticism over a poster in a London store. The poster appeared to highlight the benefits of free labour through work experience, called Workfare. The offending poster depicted a number of volunteer staff at the Haringey branch and was captioned: "How the work experience programme can benefit your store. Would 750 hours with no payroll costs help YOUR store?"[24] Homebase responded that "Any individual involved in work experience is provided with a training plan to help them understand the different parts of the store operation in order to help them go on to secure a job (either within our business or elsewhere). We ensure they work alongside, not replace, paid colleagues. They are entirely under no obligation to participate, nor will non participation affect any benefits."[25]

In May 2014, Homebase launched the Homebase Design Centres. The new look stores had a Decorating Ideas and Advice Centre, offering touch screen technology, to help customers transform the look of rooms in their homes.

Following a review of the business, Home Retail Group announced in October 2014 that it would close around a quarter of Homebase stores by 2019, and that it would increase the number of Argos and Habitat concessions within the stores.[26] In April 2015, former Tesco executive Echo Lu succeeded Paul Loft as Managing Director.[27]

### Wesfarmers ownership

[edit]

On 18 January 2016, it was announced that Australian retailer Wesfarmers, owners of Australia's leading hardware store Bunnings, would acquire Homebase for £340 million, subject to shareholder approval.[28] The transfer of ownership to Wesfarmers took place on 27 February 2016[29] and afterwards Peter Davis was appointed Managing Director, succeeding Echo Lu.[30]

Wesfarmers announced in June 2016 that it had cancelled the plans by Home Retail Group to close seven stores, and would seek to prevent the closure of eleven others. It described the closure of five additional stores as "unavoidable".[31] It was also announced that Archie Norman was to advise on the turnaround of Homebase under Wesfarmers.[32]

Laura Ashley plc confirmed in October 2016 that it would remove its concessions trading in 22 Homebase stores by the second quarter of 2017, as Wesfarmers sought to remove all concessions and adopt the same business model as its Australian and New Zealand business.[33]

A branch in Worle, Somerset that had been converted from Homebase to the Bunnings Warehouse format.

The company moved its headquarters within Milton Keynes in December 2016, from premises previously shared with former sister company Argos.[34]

Following the sale to Wesfarmers, Homebase left the Nectar scheme on 31 December 2016.[35]

Bunnings confirmed in November 2016 that the Homebase store in St Albans would be the first to be re-branded as Bunnings Warehouse as part of a trial, and opened in February 2017.[36] An additional three were planned to be opened by June 2017, with up to six more completed by the end of the year.[37] The stores adopted a low-cost warehouse model.[38]

In February 2018, Wesfarmers reported losses relating to the takeover of £57 million in the year to June 2017, and stated that it would begin a review of the business.[39] Wesfarmers sought buyers for the business in March,[40] and by May, had received bids from restructuring firms Alteri Investors and Hilco.[41]

### Hilco ownership

[edit]

On 25 May 2018, it was announced that Homebase had been sold by Wesfarmers to turnaround specialists Hilco, for a nominal one pound sterling.[42] Hilco took ownership of the business on 12 June 2018 through a new holding company, HHGL Limited. All 24 stores converted to the Bunnings format were rebranded back to Homebase. At the end of August 2018, a company voluntary arrangement (CVA) proposed by Hilco to close 42 stores, and reduce rent on others, was approved by Homebase's creditors.[43][44]

The stores identified for closure in the CVA were planned to close by the beginning of 2019.[45] Homebase secured a £95 million asset lending contract with Wells Fargo Capital Finance on 26 November 2018.[46]

On 24 December 2018, Hilco opened its first redesigned store nicknamed BoB (Best of Both) in Orpington.[47] The store featured traditional Homebase "gondola" shelving alongside the Bunnings red racking, with a heavy focus on decorating, moving away from Wesfarmers' primary focus on tools. At that time Homebase had over 170 stores in the United Kingdom,[48] with a further eleven in Ireland.

In February 2020, it was announced that Homebase had returned to profit earlier than initially forecast, with nearly all of its 164 locations profitable. The company said that its overhauled website, and the reintroduction of in-store concessions (many of which were removed by Wesfarmers) had helped it to achieve the reprise.[49] Homebase confirmed that it would exit its CVA earlier than planned by April 2020.[50] In November 2020, Hilco put Homebase up for sale.[51]

In 2021, Hugh Osmond was understood to have been assembling a takeover bid for Homebase for £300 million.[52]

In February 2024, Hilco put Homebase up for sale for the second time within four years.[53] In the same month, it was reported that Homebase had made heavy losses in the previous year, with Hilco continuing to look for a buyer, and that B&M European Value Retail and CDS (Superstores International) (owner of The Range and Wilko) had been approached regarding takeover deals.[54] In July 2024, it emerged that CDS had approached Hilco Capital regarding a Homebase takeover deal, with an insider revealing that a formal sale process was due to begin within the next few days.[55] In August 2024, Hilco sold 10 Homebase locations to Sainsbury's for £130 million, to be converted into supermarkets.[56]

### Administration

[edit]

Further information: Homebase (brand)

On 13 November 2024, it was reported that Hilco was preparing to place the business into administration, with the retailer's holding company, HHGL Limited, collapsing into administration on the same day.[57] It was announced that CDS Superstores would acquire the Homebase brand and up to 70 of the UK stores, safeguarding about 1,500 jobs. The purchased stores will be gradually be rebranded as The Range, while Homebase.co.uk will continue.[58][59] It was later announced that The Range's garden centres would be rebranded as "Garden Centre by Homebase".[60]

It was reported that administrators had set a deadline of 29 November 2024 to sell the remaining 74 stores to other chains, with a reported 2,000 jobs at risk.[61]

On 28 November 2024, it was revealed that Marks & Spencer and Kingfisher plc (owner of B&Q and Screwfix) were interested in buying some of the remaining stores, with Home Bargains also expressing interest.[62][63]

A branch in Hessle, Yorkshire, administration signs are prominent as the store is in a closing down sale.

On 23 December 2024, it was announced that CDS Superstores would convert the first three Homebase stores (Christchurch, Glasgow and Kings Heath) to The Range format on 17 January 2025, including the new ‘Garden Centre by Homebase’ concessions. It aims to change over around 10 stores every month, where the current administrators will transfer their ownership to CDS Superstores.[64]

On Christmas Eve 2024, it was announced that B&Q would purchase and convert three Homebase stores in the Republic of Ireland.[65] The remaining five Homebase stores in Ireland were not listed for sale.[66]

On 6 January, it was announced that B&Q had purchased five stores (Altrincham, Basingstoke, Biggleswade, Leamington Spa and Worcester), with plans to convert them to B&Q outlets in Spring 2025.[67]

On 20 January, it was announced that 13 stores – Bradford, Broadstairs, Cheltenham, Colchester Stanway, Coventry, Derby Chaddesden, Gloucester, Hull Hessle, London Streatham Vale, Oban, Oldbury, Romford and Wolverhampton – would close at unspecified future dates.[68]

On 21 January at midnight, the Homebase website was relaunched under CDS ownership, similar in appearance to Wilko's website. The website also uses the Bathstore brand.[69]

On 3 February, the Jonas & James and The Range Kitchens brands (which are brands of CDS, having showrooms in some stores of The Range) would be merged together and rebranded to "Kitchens by Homebase". Homebase's branded DIY products would be brought back and begin to be sold at The Range's stores. The retailer also said they plan to convert 53 locations by the end of May 2025[70]

On 5 February, it was reported that 33 non-CDS acquired Homebase stores would be closing by the end of February.[71]

On 28 February, it was announced that Wickes would acquire four UK Homebase leases, including for one store that had already closed.[72]

In March 2025, The Range opened the first 'Kitchens by Homebase' concession, the final day of trading for the four remaining original Homebase stores was 22 March 2025.[73]

## References

[edit]

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2. ^ Week, Marketing (4 August 1995). "Texas move forces exit of senior trio". Marketing Week. Retrieved 30 November 2024.
3. ^ Tran, Mark (21 November 2002). "Argos owner to buy Homebase". The Guardian. ISSN 0261-3077. Retrieved 30 November 2024.
4. ^ "Homebase sold for £1 as DIY disaster ends for Wesfarmers". BBC News. 25 May 2018. Retrieved 4 December 2024.
5. ^ Shepard, Rosie (13 November 2020). "As 'for sale' sign is raised over Homebase who might be potential buyers?". Retail Week. Retrieved 6 April 2025.
6. ^ "HHGL LIMITED filing history - Find and update company information - GOV.UK". find-and-update.company-information.service.gov.uk. Retrieved 20 March 2025.
7. ^ Morgan, Aoife (24 December 2024). "B&Q acquires 3 Homebase stores in Ireland – Retail Gazette". Retrieved 24 December 2024.
8. ^ Beevers, Angela (28 February 2025). "Wickes expands store footprint through acquisition of four Homebase stores | Retail Bulletin". Retail Bulletin | Daily UK Retail News. Retrieved 28 February 2025.
9. ^ "The Range is set to move into former Homebase store in Market Harborough". Harborough Mail. 24 March 2025. Retrieved 6 April 2025.
10. ^ "Homebase owner to close up to 60 stores in CVA". www.insightdiy.co.uk. Retrieved 2 March 2025.
11. ^ Cope, Nigel (26 January 1995). "Sainsbury's buys out Texas DIY". The Independent. Retrieved 4 November 2016.
12. ^ Cope, Nigel (13 January 1995). "Sainsbury's tipped to buy Texas". The Independent. Retrieved 4 November 2016.
13. ^ Rankine, Kate (25 August 2000). "Ex-Texas chief may join Homebase bid". The Telegraph. Retrieved 4 November 2016.
14. ^ Shah, Saeed (1 September 2000). "Focus targets Homebase after Wickes yields to £289m bid". The Independent. Retrieved 28 February 2017.
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16. ^ "Homebase sale completed" (Press release). J Sainsbury plc. 2 March 2001. Archived from the original on 27 September 2007. Retrieved 21 November 2006.
17. ^ "Sainsbury's sells Homebase". BBC News. 22 December 2000. Retrieved 30 September 2013.
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19. ^ Davidson, Ros (28 March 2006). "GUS to demerge Experian and Argos". The Guardian. ISSN 0261-3077. Retrieved 5 December 2024.
20. ^ "Homebase unveils first advertising for six years without Neil Morrissey and Leslie Ash". BrandRepublic. Retrieved 30 September 2013.
21. ^ "Homebase Scrap Spend & Save Card and join Nectar" (Press release). Homebase. 16 March 2009. Retrieved 16 March 2009.
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27. ^ Tugby, Luke (19 March 2015). "In the news: Homebase's new managing director Echo Lu profiled". Retail Week. Retrieved 2 August 2015.
28. ^ "Homebase bought by Australia's Wesfarmers for £340m". BBC News. 18 January 2016. Retrieved 18 January 2016.
29. ^ Neilan, Catherine (29 February 2016). "Homebase to be rebranded Bunnings after Wesfarmers completes £340m acquisition from Home Retail Group – now what's happening with Argos?". City AM. Retrieved 29 February 2016.
30. ^ Appleby, Matthew (14 October 2016). "Bunnings pilots will create key opportunities for suppliers". Horticulture Week. Retrieved 28 October 2016.
31. ^ Misiri, Talya (23 June 2016). "Wesfarmers to save up to 700 Homebase jobs". Retail Gazette. Retrieved 28 October 2016.
32. ^ Armstrong, Ashley (22 June 2016). "Archie Norman returns to UK retail with Homebase revival". The Telegraph. Retrieved 1 October 2016.
33. ^ Greenblat, Eli (25 October 2016). "Wesfarmers revamps UK hardware chain by ditching Laura Ashley". The Australian. Retrieved 28 October 2016.
34. ^ Hardy, Emily (31 October 2016). "Homebase to split from Argos with new headquarters". Retail Week. Retrieved 1 November 2016.
35. ^ "Homebase to leave Nectar points scheme at end of 2016". BT. Love Money. 8 June 2016. Retrieved 28 October 2016.
36. ^ "Bunnings DIY store opening causes Aussie sizzle". BBC News. 2 February 2017. Retrieved 9 February 2017.
37. ^ "Bunnings unveils pilot store plans to BHETA members". Housewares Live. 8 November 2016. Retrieved 12 November 2016.
38. ^ Appleby, Matthew (9 September 2016). "Homebase looks ahead to future renamed as Bunnings". Horticulture Week. Retrieved 28 October 2016.
39. ^ Butler, Sarah (5 February 2018). "'Botched' Homebase takeover puts hundreds of jobs at risk". The Guardian. Retrieved 9 April 2018.
40. ^ Withers, Iain (31 March 2018). "Homebase owner seeks buyers as DIY chain turnaround flounders". The Telegraph. Retrieved 9 April 2018.
41. ^ Espinoza, Javier (23 May 2018). "Potential bidders emerge for Homebase". Financial Times. Retrieved 23 May 2018.
42. ^ "DIY disaster ends as Homebase sold for £1". BBC News. 25 May 2018. Retrieved 25 May 2018.
43. ^ "Homebase to close 42 stores and cut jobs". BBC News. 14 August 2018. Retrieved 14 August 2018.
44. ^ "Homebase: The stores that will close". BBC News. 14 August 2018. Retrieved 11 January 2020.
45. ^ "Homebase rescue plan voted through by creditors". BBC News. 31 August 2018. Retrieved 2 September 2018.
46. ^ "Homebase Completes Refinancing with Wells Fargo" (Press release). Wells Fargo. 26 November 2018. Retrieved 28 December 2018.
47. ^ "Homebase Orpington Gets a Makeover". InsightDIY. 24 December 2018. Retrieved 28 December 2018.
48. ^ Appleby, Matthew (28 April 2017). "Analysts give their reaction to Homebase/Bunnings quarterly results". Horticulture Week. Retrieved 10 May 2017.
49. ^ Jahshan, Elias (27 February 2020). "Homebase returns to profit earlier than expected". Retail Gazette. Retrieved 8 April 2020.
50. ^ Eley, Jonathan (27 February 2020). "Homebase to exit CVA early after returning to profit". Financial Times. Retrieved 28 January 2021.
51. ^ Eley, Jonathan (11 November 2020). "Hilco puts Homebase up for sale". Financial Times. Retrieved 28 January 2021.
52. ^ Fish, Isabella (14 November 2024). "Homebase goes into administration with jobs at risk". The Times. Retrieved 14 November 2024.
53. ^ Hill, Eloise (27 February 2024). "Homebase for sale for second time within four years". Retail Gazette. Retrieved 14 November 2024.
54. ^ Hill, Eloise (28 February 2024). "Homebase plunges into the red after 'challenging year'". Retail Gazette. Retrieved 1 March 2024.
55. ^ Hill, Eloise (21 July 2024). "Homebase owner approached by The Range as it eyes sale". Retail Gazette. Retrieved 21 July 2024.
56. ^ Hill, Eloise (29 August 2024). "Sainsbury's snaps up 10 Homebase stores in £130m deal". Retail Gazette. Retrieved 29 August 2024.
57. ^ "Homebase collapses with 2,000 jobs at risk". BBC News. 13 November 2024. Retrieved 14 November 2024.
58. ^ "The Range closes in on chunk of Homebase in pre-pack sale". Sky News. 13 November 2024. Retrieved 14 November 2024.
59. ^ Goldfingle, Gemma (13 November 2024). "The Range owner snaps up Homebase brand and stores as it falls into administration". Retail Gazette. Retrieved 14 November 2024.
60. ^ "The Range on LinkedIn: #therange #wilko". LinkedIn. Retrieved 14 November 2024.
61. ^ "Telford Homebase among 74 stores up for sale as chain collapses". Shropshire Live. 23 November 2024. Retrieved 23 November 2024.
62. ^ "M&S and Kingfisher among suitors circling Homebase stores". Sky News. Retrieved 28 November 2024.
63. ^ Wright, Georgia (29 November 2024). "Kingfisher and M&S eye Homebase stores – Retail Gazette". Retrieved 29 November 2024.
64. ^ Morgan, Aoife (23 December 2024). "The Range to open first set of former Homebase stores next month – Retail Gazette". Retrieved 23 December 2024.
65. ^ Morgan, Aoife (24 December 2024). "B&Q acquires 3 Homebase stores in Ireland – Retail Gazette". Retrieved 24 December 2024.
66. ^ Morgan, Aoife (24 December 2024). "B&Q acquires 3 Homebase stores in Ireland – Retail Gazette". Retrieved 24 December 2024.
67. ^ Morgan, Aoife (6 January 2025). "B&Q acquires 5 Homebase UK stores – Retail Gazette". Retrieved 6 January 2025.
68. ^ Schofield, Claire (20 January 2025). "Homebase closing 13 UK stores for good in January – full list of locations". Express.co.uk. Retrieved 20 January 2025.
69. ^ "Homebase". www.homebase.co.uk. Retrieved 21 January 2025.
70. ^ Morgan, Aoife (3 February 2025). "Interview: How The Range plans to keep the Homebase brand alive - Retail Gazette". Retrieved 3 February 2025.
71. ^ Cornish, Phoebe (5 February 2025). "Full list of 33 Homebase stores closing for good this month". Express.co.uk. Retrieved 5 February 2025.
72. ^ Beevers, Angela (28 February 2025). "Wickes expands store footprint through acquisition of four Homebase stores | Retail Bulletin". Retail Bulletin | Daily UK Retail News. Retrieved 28 February 2025.
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