Homebase has been sold in a rescue deal to retailer CDS, securing up to 1,600 jobs and 70 stores across the UK, its administrator Teneo has said.

Despite the deal, around 2,000 jobs and 49 branches of the DIY retailer are still at risk. The shops in danger of being shuttered will continue to operate until a buyer is found.

CDS, owned by retail magnate Chris Dawson, bought the 40-year-old Homebase brand.

CDS acts as parent company to The Range, and Dawson also bought parts of high-street retailer Wilko after it collapsed in 2023.

Administrators have not immediately disclose the locations of the 49 outlets which were not included in the deal.

The Mirror is reporting that the Homebase stores included in the deal will re-open as The Range superstores after being transferred to CDS.

Damian McGloughlin, chief executive of Homebase, said the past three years 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.

“These efforts have not been successful and today we have made the difficult decision to appoint administrators.”

Homebase has struggled as customers cut back on spending amid the cost-of-living crisis, reporting an £84.2m loss last year.

In August, Sainsbury’s bought 10 Homebase stores in a deal to convert them into supermarkets.

The jobs still at risk include workers at Homebase’s head office in Milton Keynes, as well as the remaining stores.

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

Dawson, whose CDS acts as parent company to The Range, also bought parts of high-street retailer Wilko after it collapsed in 2023.

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 which were 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.