Homebase has been sold to retail group CDS in a rescue deal securing up to 1,600 jobs and 70 stores but leaving the future of unclear for hundreds of workers.
The DIY retailer appointed administrators at consultancy Teneo on Wednesday before CDS, which owns The Range homeware outlets, bought the majority of its stores out of administration.
Homebase currently has 125 stores in Britain and 16 on the island of Ireland, including eight in the north.
Eleven UK sites are already earmarked for closure following a deal with Sainsbury’s in September.
That deal will see Homebase stores in Omagh and Derry’s Crescent Link transformed into new supermarkets from next summer.
The future of the six remaining sites in the north and eight in the Republic remains uncertain.
Teneo said the remaining stores will continue to trade as normal while administrators try to find a buyer.
CDS, which is owned by retail magnate Chris Dawson, bought the 40-year-old Homebase brand.
Damian McGloughlin, chief executive of Homebase, said the last 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 was bought for £1 by investment firm Hilco Capital in 2018, which introduced a swathe of cost-cutting measures in the subsequent years.
But the retail chain struggled as customers cut back on spending amid the cost-of-living crisis, and reported an £84.2 million loss last year.
The Range currently has nine stores in Northern Ireland and has been linked with additional sites.
Four of the six remaining Homebase stores in the north are located in towns where The Range does not currently have a presence: Cookstown, Antrim, Bangor and Craigavon.
Both Homebase and The Range have a presence on Belfast’s Boucher Road.
The Range has also expanded its presence across the Republic in recent years, where it currently has eight stores.
