Homebase, the UK-based DIY retailer owned by specialist investor Hilco, is set to initiate discussions with potential new investors to support its growth strategy. These talks will begin next week, following the recent sale of 10 Homebase leasehold stores to Sainsbury's.
Hilco, which acquired Homebase for £1 in 2018 after its unsuccessful stint under Australian retailer Wesfarmers, is guiding the company through a restructuring phase. The company experienced strong performance during the pandemic but reported losses of £84 million for the fiscal year ending January 2023.
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CEO Damian McGloughlin, who anticipates a return to profitability in 2024, acknowledged in an article in Retail Week that trading remains challenging but noted that Homebase is performing better than the market average. McGloughlin emphasised that Hilco's support remains steadfast even if a sale does not proceed, and the investment talks present an opportunity to attract new backing. Potential investors reportedly include The Range and B&M, although specific participants in the investment talks have not been confirmed.
Source: www.retail-week.com