Homebase could be on the market again after £1 sale

Homebase could reportedly be put up for sale again after it was sold for £1 to Hilco Capital back in 2018.

A number of parties have reportedly held talks with the restructuring giant about snapping up the garden chain including The Range and B&M Bargains. 

It was reported by The Times that there was speculation surrounding Homebase’s brand and 170 stores, and how they could be split up and sold off under new ownership. 

Hilco, a refinancing specialist, rescued the chain from Wesfarmers in 2018, an Australian firm which paid £340m for the group only 18 months earlier. 

Markets widely viewed the offshore takeover as disastrous, with Wesfarmers accused of underestimating the competition from the likes of B&Q and the differences between British and Australian retail. 

Hilco first put the business up for sale in 2020 as it looked to capitalise on the home improvement trend which boomed during the pandemic. 

Pizza Express founder Hugh Osmond was also understood to be mulling a £300m takeover of the firm in 2021. 

City A.M has contacted mentioned parties for a comment. 

This week’s developments come amid a heightiend period of potential deal activity in the retail sector. 

Electrical retailer Currys is also fighting off bids from Waterstones owner Elliot Investment Management and Chinese commerce platform JD.Com. 

Rob Baxter, UK head of corporate finance and global head of KPMG’s consumer and retail M&A team, previously told City A.M he predicts more deals as the sector continues “restructuring itself”.

“[It] looks like what we’re seeing is more consolidation within certain sectors and more clear distinction between the winners and losers in the sector,” he explained.