Homebase edges closer to sale as potential buyers circle

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Homebase

Homebase could soon be bought from its struggling Australian owner Wesfarmers as interested private equity firms begin to circle.

According to the Press Association, firms including Hilco, Endless, Lion Capital and even discount retailer B&M are considering putting forward an offer for the embattled DIY firm.

This follows recent reports that bank Lazard had been flown in by Wesfarmers to help find a buyer.

Following its disastrous foray into the UK with its £340 million acquisition of Homebase and subsequent efforts to rebrand its extensive estate into the Australian Bunnings fascia, Wesfarmers are understood to be keen to offload the retailer and pull out of the country.

Earlier this year, Wesfarmers revealed nearly £100 million in losses across its UK operations, more than tripling from a year prior.

The group subsequently announced it was launching a review of the business which could lead to 40 store closures and 2000 job losses, around 20 per cent of its entire operation.

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4 COMMENTS

  1. Just like Masters, they’re going to pull the plug way before they give it enough time to develop on it’s own. Only a fool would think it would turn profit instantly, of course it will lose a chunk of money, you would even assume as much as 500 billion pounds a year for the first few years.
    It’s a long term game. Bunning needs to explain this to shareholders, shareholders need to quit fretting. If they “HOLD” and wait 3-6 years, their shares will be worth unimaginable amounts.

  2. communication with management and staff of which stores are closing
    so that it gives fulltime staff a chance to find another job

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