Homebase
| File:Homebase logo.svg Homebase logo used from 1999 to 2024 | |
| Company type | Private |
|---|---|
| Industry | Retail (home improvement and garden centre) |
| Predecessor | Texas Homecare (acquired 1995) |
| Founded | March 3, 1981 in Croydon, United Kingdom |
| Defunct | March 2025 |
| Fate | Placed into administration; brand, website, and 49 stores acquired by CDS Superstores; remaining stores sold to B&Q and Wickes; final stores closed in March 2025 |
| Headquarters | Milton Keynes , United Kingdom |
Area served | United Kingdom and Ireland |
Key people | Peter Davis (Managing Director, post-2016) |
| Products | Home improvement and garden centre products |
Number of employees | Approx. 3,446 (at time of administration in 2024) (2024) |
| Parent | Various (Sainsbury's, Schroder Ventures, Argos Retail Group/Home Retail Group, Wesfarmers, Hilco Capital) |
| Website | homebase |
Homebase was a retailer specializing in home improvement and garden centre products, operating throughout the United Kingdom and Ireland.
Established in March 1981 as Sainsbury's Homebase through a partnership between supermarket giant Sainsbury's and Belgian retailer GB-Inno-BM, the chain expanded to 50 locations by the late 1980s, securing its position as the fourth largest home improvement retailer in the UK.
The acquisition of competitor Texas Homecare in January 1995 propelled Homebase to third place in market share, trailing only B&Q and Focus-Wickes. The company adopted the simplified name Homebase in 1999 before being sold to Schroder Ventures in December 2000. It subsequently became part of Argos Retail Group, later rebranded as Home Retail Group, in November 2002.
In January 2016, Australian conglomerate Wesfarmers acquired Homebase with plans to transition stores into its Bunnings Warehouse format; however, this venture resulted in a £1 billion loss. Hilco Capital, a restructuring firm, purchased Homebase for £1 in August 2018. Following this acquisition, 42 outlets were closed and 1,500 positions were eliminated through a company voluntary arrangement (CVA) aimed at restoring profitability. By February 2020, Homebase operated 164 stores and had returned to profitability. Hilco subsequently put the company up for sale in November 2020.
In November 2024, Homebase was placed into administration by Hilco, endangering approximately 3,446 jobs across 135 stores. The website, brand, and 49 stores were acquired by CDS Superstores for conversion into The Range outlets. Meanwhile, the remaining twelve stores in the UK and Ireland were purchased by B&Q and Wickes, with the final four original locations closing their doors in March 2025.
Sainsbury's ownership
The inception of Homebase occurred in 1979 when supermarket chain Sainsbury's teamed up with Belgian retailer GB-Inno-BM to bring a supermarket-style retail approach to the UK DIY sector. The inaugural store launched on 3 March 1981 in Croydon under the name Sainsbury's Homebase.
Initially, Homebase capitalized on Sainsbury’s logistical expertise by utilizing centralized warehouses for stock distribution. By the early 1990s, the majority of inventory was delivered to central depots before being dispatched to individual stores.
A significant expansion took place in January 1995 when Sainsbury's acquired rival Texas Homecare from Ladbrokes, tripling Homebase’s size. Between 1996 and 1999, Texas outlets were rebranded and remodeled to fit the Homebase format, beginning with the Longwell Green location near Bristol. At the time of acquisition, Texas employed approximately 11,600 staff compared to Homebase’s workforce of around 4,500.
In October 1999, Sainsbury's expanded its presence into Ireland by acquiring Hampden Group, which operated ten franchised Homebase stores.
Between 1999 and 2005, actors Neil Morrissey and Leslie Ash served as prominent brand ambassadors for Homebase.
In August 2000, Ron Trenter, former CEO of Texas Homecare, made an unsuccessful attempt to acquire Homebase. Focus Do It All considered purchasing Homebase in September 2000 but ultimately acquired Great Mills instead. In October that year, Home Depot also entered the bidding process but did not succeed.
Schroder Ventures ownership
On 22 December 2000, Sainsbury's completed a two-stage sale of Homebase valued at £969 million: in March 2001, Schroder Ventures (a private equity firm) acquired 283 stores for £750 million while rival group Kingfisher plc—owner of B&Q—purchased 28 development sites for £219 million. At this point, Homebase commanded a 13% share of the UK market with its network of 283 stores employing around 17,000 people, ranking it behind B&Q and Focus Do It All.
Argos / Home Retail Group ownership
In November 2002, Argos Retail Group (ARG), a division of GUS plc, acquired Homebase for £900 million.[1] By October 2006, GUS had separated Experian and rebranded ARG as Home Retail Group.[2]
Between 2005 and 2013, Homebase promoted its brand through television advertisements using the tagline "Make a house a home," accompanied by tracks from artists such as Girls Aloud, Enya, and Peter Bjorn and John.[3]
Home Retail Group expanded Homebase's footprint in October 2007 by purchasing 27 leasehold stores from Focus DIY for £40 million in cash. These outlets were rebranded as Homebase by the end of that year. The acquisition did not include inventory or operational assets, although employees were transferred.
In May 2009, Homebase discontinued its long-running Spend & Save loyalty card, which had been in place since 1982, opting instead to join the Nectar card program—the largest retail loyalty scheme in the UK.[4]
By July 2013, Home Retail Group revealed that its Irish operations had been loss-making for five consecutive years and announced plans to close three out of fifteen stores in Ireland.[5]
In April 2013, Homebase encountered public scrutiny over a promotional poster at a London location endorsing unpaid work experience ("Workfare"). The company clarified that participants received structured training plans and worked alongside paid employees without mandatory participation or effect on their benefits.[6]
May 2014 saw the introduction of Design Centres at Homebase stores, which incorporated Decorating Ideas and an Advice Centre, utilizing touchscreen technology to support customers.
Following a strategic evaluation, Home Retail Group declared in October 2014 its intention to shutter approximately 25% of Homebase outlets by 2019 while simultaneously growing Argos and Habitat concessions within the remaining stores.[7] In April 2015, Echo Lu, formerly with Tesco, took over as Managing Director from Paul Loft.[8]
Wesfarmers ownership
On 18 January 2016, Australian retail conglomerate Wesfarmers, which owns the prominent hardware retailer Bunnings, revealed its intention to acquire Homebase for £340 million, pending approval from shareholders. The acquisition was finalized on 27 February 2016, with Peter Davis taking over as Managing Director, replacing Echo Lu.
In June 2016, Wesfarmers halted Home Retail Group's strategy to shutter seven stores and sought to save eleven others from closure, while acknowledging that five store closures were unavoidable. Archie Norman was brought in as an advisor to guide Homebase’s recovery under Wesfarmers’ stewardship.
By October 2016, Laura Ashley plc announced it would withdraw its concessions from 22 Homebase outlets by mid-2017 as Wesfarmers aimed to phase out concessions and align operations with its business model used in Australia and New Zealand. Additionally, the company relocated its headquarters within Milton Keynes in December 2016, marking a separation from former affiliate Argos.
Following the sale, Homebase exited the Nectar loyalty program at the close of 2016. In November of the same year, Bunnings declared that its St Albans location would serve as the pilot store for rebranding as Bunnings Warehouse, opening in February 2017. Further store conversions were planned throughout 2017, adopting a cost-efficient warehouse retail format.
By February 2018, Wesfarmers disclosed losses of £57 million linked to the Homebase acquisition for the fiscal year ending June 2017 and commenced a strategic review of the business. In March, Wesfarmers began seeking potential buyers for Homebase and by May had received offers from restructuring specialists Alteri Investors and Hilco Capital.
Hilco ownership
On 25 May 2018, Wesfarmers divested Homebase to turnaround experts Hilco for a nominal sum of £1. Hilco assumed control on 12 June 2018 through a newly formed holding entity, HHGL Limited. All stores that had been converted to the Bunnings format reverted to the Homebase brand. By August 2018, creditors approved a company voluntary arrangement (CVA) proposed by Hilco involving the closure of 42 stores and renegotiation of rents on others.
The targeted store closures were planned for completion by early 2019. On 26 November 2018, Homebase secured a £95 million asset-based lending facility from Wells Fargo Capital Finance.
Hilco unveiled its first revamped store concept called BoB (Best of Both) on 24 December 2018 in Orpington. This new format blended traditional Homebase shelving with Bunnings-style racking and placed greater focus on home decorating rather than tools. At that point, Homebase operated more than 170 stores across the UK and eleven in Ireland.
By February 2020, Homebase had returned to profitability ahead of schedule, with nearly all of its 164 outlets generating profits. Enhancements included a revamped e-commerce platform and the reintroduction of in-store concessions that had been removed during Wesfarmers’ tenure. The company aimed to exit its CVA by April 2020. In November 2020, Hilco put Homebase up for sale again. Reports in 2021 indicated Hugh Osmond was preparing a £300 million acquisition bid.
In February 2024, Hilco once more offered Homebase for sale amid reports of significant losses incurred the previous year. Potential purchasers included B&M European Value Retail and CDS (Superstores International), owner of The Range and Wilko. By July 2024, CDS had formally engaged with Hilco regarding an acquisition, with a sale process expected imminently. In August 2024, Hilco completed the sale of ten Homebase outlets to Sainsbury’s for £130 million to be converted into supermarket locations.
Administration and closure
On 13 November 2024, Hilco initiated steps to place Homebase into administration, coinciding with the collapse of its parent company, HHGL Limited, on the same date. The Homebase brand, website, and 49 stores were acquired by CDS Superstores, which planned to rebrand these locations as 'The Range', safeguarding roughly 1,500 positions.
By 23 November 2024, administrators established a deadline of 29 November to divest the remaining 74 stores to alternative retail groups, threatening about 2,000 jobs. On Christmas Eve 2024, B&Q revealed its acquisition and planned conversion of three Homebase outlets in the Republic of Ireland. Subsequently, on 6 January 2025, B&Q purchased an additional five UK stores located in Altrincham, Basingstoke, Biggleswade, Leamington Spa, and Worcester. Later, on 28 February, Wickes secured leases for four UK Homebase sites, including one that had ceased operations.
The last day of trading for the final four original Homebase stores—situated in Bishop's Stortford, Frome, Market Harborough, and Sevenoaks—occurred on 22 March 2025. These stores were promptly transitioned into The Range outlets.
Legacy
On 26 June 2025, BBC Radio 4 broadcasted a 25-minute documentary focusing on Homebase as part of its Toast series dedicated to businesses that have ceased operations.