Failed full sale of Homebase leaves 2,000 jobs at risk

The jobs of more than half of the workforce at the DIY chain Homebase are at risk after the retailer's owners called in administrators following a failed attempt at a sale.

Sky News reported earlier on Wednesday that around 1,500 people were set to keep their roles as 75 of the 130 stores were set to be snapped up by the saviour of Wilko in a so-called pre-pack deal.

The Range, also a general merchandise specialist, was confirmed as the buyer later in the day.

Teneo, which is handling the process, is understood to have been working to find a buyer for as many of the chain's sites as possible.

Teneo said in a statement on Wednesday afternoon that up to 70 stores were confirmed to be included in the deal - saving up to 1,600 jobs out of 3,600.

It leaves 2,000 jobs at risk.

Forty-nine other stores will continue to trade while alternative offers are explored.

Sources told Sky's City editor Mark Kleinman that there had been many expressions of interest in the remaining stores, despite the gloom being felt across the retail sector over the higher tax take demanded in the budget.

The sector has warned of higher inflation and job losses arising from the measures, which include increased employer national insurance contributions and minimum wage levels.

The pre-pack deal - which typically allows a buyer to cherry-pick the assets it wants - brings to an end a six-year ownership of Homebase by Hilco, the retail restructuring specialist.

Teneo had initially been attempting to find a buyer for the whole Homebase business.

The partial sale comprises all those stores in the Republic of Ireland and the Homebase brand and its e-commerce business.

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The Range is part of CDS Superstores, which is controlled by the businessman Chris Dawson - nicknamed "the Del Boy billionaire" because of the distinctive number plate on his Rolls-Royce Wraith.

Last year, it paid £7m to buy the brand and intellectual property assets of Wilko, which had collapsed into administration.

Since then, Mr Dawson has opened a string of new Wilko outlets.