Homebase up for sale following major structural overhaul
DIY chain Homebase is up for sale again following two and a half years of major structural overhaul by its most recent buyers.
It is understood the sales process will start in the coming days, with initial details set to be sent to prospective buyers – including other retailers and private equity, The Telegraph reported today.
According to The Telegraph the group is hoping to secure new ownership by Easter. A stock market listing is also said to be one of the options on the table.
The sale comes after recent major structural overhaul at the firm. Hilco, a restructuring firm, bought Homebase in 2018 for just £1. Prior to that the chain had been owned by an Australian firm who bought Homebase just two years prior to that for £340 million.
In the two years under Hilco, the DIY chain has undergone a major overhaul. The restructuring firm shut down stores and bought Bathstores out of administration last year, and has now opened 49 concessions in its stores.
Chief financial officer Andy Coleman previously told City PM the company had “attacked the cost based across all areas of the business”.
This included halving its stock losses, reducing its number of distribution centres from six to three and making redundancies in its head office.
The changes appeared to do the firm some good. In February 2020 it announced it had returned to profit earlier than expected after its turnaround plan helped deliver strong growth.
The DIY retailer reported earnings before interest, tax, depreciation and amortisation of £3.2m for the year, up from a £114.5m loss in 2018.
In a statement Homebase said: “Having built an excellent foundation, Homebase is moving out of its turnaround phase and entering into an exciting new chapter of growth. Now is the right time for us to be starting conversations with potential new owners to accelerate our plan.”