Bunnings’ owner has started a search for buyers for the DIY retailer while considering the closure of 40 underperforming stores with a company voluntary arrangement (CVA).
According to Sky News, Wesfarmers has drafted in Lazard to help secure a buyer for its 250 stores estate in the UK, after it purchased Homebase in 2016 for £340 million.
Since then, it has been pushing to convert the Homebase estate into Bunnings but has faced significant financial troubles in the process.
Australian-based Wesfarmers reported in February that its group profits had dropped 86.6 per cent, having been dragged down by its introduction into the UK.
It revealed a £506 million write-down of Bunnings UK, a sum larger than its original buying price, alongside a £15.5 per cent drop in Bunnings UK revenues.
Though an outright sale is understood to be the most likely outcome, with Lazard having already approached a range of new prospective owners, a CVA is also on the cards.
Executives are understood to have already pledged to close around 40 underperforming stores.
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6 Comments. Leave new
Sadly even the biggest firms eg Tesco in the US bumble into new markets having very little of what they are doing. Bunnings will take a massive hit,who in their right mind is going to buy a failing DIY chain? If they get 50% of what they paid they should celebrate.
Rather than cut and run they could ditch Bunnings and keep the established Homebase brand(learn from Walmart) and try something different like running courses on diy subjects. Little better than trailing round a dire warehouse..
I work for homebase, and think its disgusting that none of the staff have been told what’s going on. We are being told by our own customer’s who have heard it on the news and read it in the news paper.
Bunnings always maintained they look after their staff, (not in this case they don’t).
Well said.i also work at homebase with customers asking me when its closing.
I started at Bunnings last November and I am extremely worried. And also like Homebase, none of us staff have not had a word from Bunnings as to whats going on. Only learning,bits and pieces from the media and customers.
Should have stayed with B&Q. It is well established and doing well in these hard times
I have spend £1000’s over the years in my local Homebase store in N12.
I have just been stung with a parking £100 parking notice for overstaying 12 minutes in their free Car park where there isn’t a real capacity issue.
I will not be using them again on principle. This type of aggressive behaviour is why they are going down the pan