Homebase - with stores in Stamford, Sleaford and Lincoln - faces slumping into administration

Some DIY stores face an uncertain future after owners called in administrators.

Homebase - which has shops in Stamford, Sleaford and Lincoln - has appointed insolvency practitioners at the Teneo consultancy.

Following the appointment, 70 stores have been snapped up by the company behind The Range and Wilko, which will save up to 1,600 jobs.

Homebase had recently sold 11 of its UK stores to Sainsbury’s and exchanged on a further three.

The remaining 49 stores will continue to trade as normal while discussions continue.

Chief executive officer of Homebase, Damian McGloughlin, said: “It has been an incredibly challenging three years for the home and garden improvement market. A decline in consumer confidence and spending following the pandemic has been exacerbated by the impact of persistent high inflation, global supply chain issues and unseasonable weather.

“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 we have made the difficult decision to appoint administrators.

“My priority continues to be our team members, and I recognise that this news will be unsettling for them. The sale of up to 70 UK stores to CDS is expected to protect up to 1,600 jobs and the remaining 49 UK stores will continue to trade as normal while the administrators complete discussions with potential buyers.

“I want to thank our team members and supplier partners from the bottom of my heart for their hard work and commitment over many years.”

The company said there will not be any immediate redundancies. All staff wages and benefits will be paid and customer orders will be fulfilled as far as possible.

Gavin Maher, joint administrator, said: “We appreciate that this is a very difficult and uncertain time for all involved. The sale to CDS preserves the Homebase brand and secures a significant number of jobs and we hope to complete sales of additional stores over the coming weeks.

“The remainder of the stores will continue to trade whilst buyers are sought. We thank Homebase’s team members and other stakeholders for their continued support.”