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The owner of troubled British DIY chain Homebase has sold the majority of its stores to the CDS group, which manages retail chains, but 2,000 jobs remain at risk.
Administrators Teneo said on Wednesday that it had “completed the sale of up to 70 stores in the United Kingdom, the brand and intellectual property” of Homebase to CDS, which owns low-cost household goods chains The Range and Wilko.
No figure was given for the sale but it said up to 1,600 jobs had been secured.
The fate of 49 other stores and 2,000 employees remained uncertain and Teneo said it was still in “active discussions with interested parties”.
Like other retailers in the home and garden improvement sector, Homebase had seen a decline in sales in the last three years, in part due to the cost-of-living crisis, Teneo said.
“A decline in consumer confidence and spending following the pandemic has been exacerbated by the impact of persistent high inflation, global supply chain issues and unseasonable weather,” said Homebase chief executive Damian McGloughlin.
McGloughlin said he recognised the appointment of administrators would be “unsettling” for employees.
“The sale of up to 80 UK stores to CDS is expected to protect up to 1,600 jobs and the remaining 49 UK stores will continue to trade as normal while the administrators complete discussions with potential buyers.”
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