B&Q is to buy five Homebase stores in the UK, including one in Elgar Retail Park in Blackpole, Worcester. it has been announced today.
B&Q has announced it has reached an agreement to acquire five leasehold stores in the UK, currently trading as Homebase, for a total purchase price of £2.5 million.
This follows the agreement to buy three stores currently trading as Homebase in the Republic of Ireland announced on December 24, 2024.
On completion of the lease assignment, the employees at the stores will become employees of B&Q.
Graham Bell, CEO, B&Q, said: “We’re delighted to be buying these five stores, bringing a total of eight additional sites to our fantastic store network in the UK and Ireland. We’re determined to give home improvers the choice and convenience they deserve, and to transform the home improvement stores in these locations to fulfil that need.
“It’s a great way to be starting 2025! We look forward to swiftly concluding these purchases and converting the stores to the B&Q brand and offer, and to welcoming our new customers to the stores and new colleagues to the B&Q family.”
Homebase was waiting on around £5 million of tax rebates before collapsing into administration late last year.
Homebase appointed administrators at consultancy Teneo after it was hit hard by an incredibly challenging three years for the DIY sector.
Administrators struck a deal to sell the business to retail group CDS, which owns The Range and Wilko, securing the future of up to 1,600 jobs and 70 stores.
However, the future of 2,000 other workers and its remaining stores was left hanging in the balance.
Administrators placed 74 leasehold Homebase stores on the market including in Worcester.
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They had set a deadline of November 29 for potential suitors to buy the remaining stores, amid efforts to secure more funds for creditors.
Homebase’s collapse came amid reports that banking giant Wells Fargo declined to extend the group’s lending facility due to concerns about its finances.
Commercial real estate adviser Altus Group, which represented the chain, said more than 50 checks, challenges and appeals against the retailer’s property tax liabilities were outstanding at the time of its collapse.
The company was seeking reductions in the overall rateable value of its store portfolio by £5.7 million following a 2023 revaluation of its annual business rates bill.
Altus said had these been dealt with before the retailer’s collapse, it would have resulted in tax rebates of around £5 million for the 2023/24 and 2024/25 financial years.