Homebase Sold to HMV's Salvager for £1

By Gary Cutlack on at

Homebase might be the next margins-of-town retailer to go down the closures and fire sale route, as the entire business has been sold to a new owner. For £1. Which sounds like a bargain, until you realise that Homebase currently loses around £20m a month. Something Will Need To Be Done.

Hence the suited superheroes at Hilco have stepped in. Hilco bought the distressed remnants of HMW back in 2013, and managed to turn that around — albeit with a reduced high street presence — so it would appear it's going to try to do it again with the DIY retailer.

As well as being potentially disastrous for the chain's current 11,500 UK staff, the move also crystallises one of the biggest financial disasters the retail sector has seen. Homebase was bought from Argos owner Home Retail Group by Australian chain Wesfarmers just two years ago for £340m, so it's taken a £339,999,999 loss in a couple of years; strange as you'd think people would always need rakes and hose pipes. [BBC]

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