Homebase up for sale once more

DIY chain Homebase is up for sale once more following a recent major overhaul to revive its fortunes.

Turnaround specialist Hilco is looking to sell the retailer after getting it back on track and amid a booming home improvement market.

The move comes just over two years after the DIY and garden centre chain was sold to Hilco for £1 after a disastrous spell under the ownership of Australian group Wesfarmers.

Wesfarmers bought the chain for £340m in 2016 but its attempts to bring its Bunnings home improvement brand to the UK by converting Homebase stores failed spectacularly.

Hilco has since carried out a widespread overhaul, shutting underperforming outlets, axing head office jobs, securing rent reductions and slashing costs to recover from steep losses.

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 group is hoping to secure new ownership by next Easter. A stock market listing is also said to be one of the options on the table.

The move comes as DIY stores have enjoyed buoyant trading as Britons have turned to home improvement projects during the coronavirus lockdown.

If a sale is achieved, it would see the fourth owner for Homebase in just five years.