Homebase racked up heavy losses last year, as it claimed customers had been “cautious” with their spending.
The business reported an £84m loss in the year to January 2023, from a profit of £30m the year prior, according to accounts viewed by The Times.
Sales also plummeted from £788m to £701m during the period.
Describing 2022-23 as a “challenging year for Homebase and retail,” the retailer said: “Customers were cautious in their spending, our costs increased significantly, including over £40m across freight and £10m on energy bills, all while consumer confidence was at an all-time low.”
It confirmed it had faced fines for failing to file annual accounts to Companies House on time, which were due in December.
The company said these had now been filed and were overdue because it had taken steps to simplify the structure of the group.
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Homebase said a “corporate simplification exercise” was implemented last year to remove eight dormant holding companies from the wider group structure, in a bid to “improve transparency and reduce administrative costs going forward”.
The group said: “Whilst the trading and operational conditions have, and remain challenging, Homebase is well set up and prepared for when the market conditions improve. Over the past five years, significant investment has been made to enhance stores [and] build a strong digital operation.”
A spokeswoman for Homebase said she was “encouraged” by trading after the account period ended “reducing our losses by 70% and growing market share in over half of our categories. We’re looking forward to delivering a profitable 2024 as we enter our peak trading season.”
The news comes after it emerged that Homebase was put up for sale for the second time within four years, with potential buyers such as B&M and The Range already sounded out on a deal.
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