B&Q has announced the acquisition of five Homebase stores across the UK in a £2.5million deal following the DIY retailer’s collapse last year. The DIY retailer will take over stores in Altrincham, Basingstoke, Biggleswade, Leamington Spa and Worcester.
The acquisition will add 25,000 sqm to B&Q’s existing store portfolio. Staff from the affected stores will transfer to B&Q as part of the agreement. The company plans to begin converting the spaces to the B&Q brand this spring.
In recent years, store closures have become the norm in Britain’s high streets and retail parks due to changing consumer behaviour and financial pressure on businesses.
Homebase placed 74 of its stores up for sale after falling into administration. While this made these sites at risk of closure, a couple of the shops are likely to be saved for the forseeable future.
This latest acquisition follows B&Q’s purchase of three former Homebase stores in the Republic of Ireland for £3.2million last month, which added 9,300sqm to its Irish portfolio of eight stores.
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B&Q chief executive Graham Bell said: “We’re delighted to be buying these five stores, bringing a total of eight additional sites to our fantastic store network in the UK and Ireland.”
“We’re determined to give home improvers the choice and convenience they deserve, and to transform the home improvement stores in these locations to fulfil that need,” he added.
Bell continued: “It’s a great way to be starting 2025. We look forward to swiftly concluding these purchases and converting the stores to the B&Q brand and offer, and to welcoming our new customers to the stores and new colleagues to the B&Q family.”
Homebase was forced to enter administration last month after its owner Hilco failed to secure new funding or find a buyer for the business. CDS Superstores, which owns The Range and Wilko, subsequently acquired the Homebase brand and up to 70 of its stores.
B&Q is expanding its store portfolio
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The first phase of store conversions is already underway, with three former Homebase locations in the UK set to reopen as The Range superstores on January 17, 2025.
As part of the administration process, Homebase is pursuing reductions of £5.7million in its store portfolio’s rateable value following a 2023 revaluation of business rates.
According to Altus Group, who were named as administrators, successful appeals could result in tax rebates of approximately £5million for the 2023/24 and 2024/25 financial years.
Alex Probyn, the president of property tax at Altus Group, outlined the issue Homebase faces in pursuing this course of action. He shared: “The appeal process is just far too slow and ultimately damaging to cash flow.”
He added: “With business now facing the biggest tax increases in three decades, the 2023 tax base must be corrected quickly to ensure that ratepayers not only receive their rebates timely but also have the confidence that their bills have been set fairly.”
Earlier this month, The Centre for Retail Research forecast 17,350 store closures over the next 12 months, marking a sharp increase from the 13,479 shuttered in 2023.
LATEST DEVELOPMENTS:
Homebase fell into administration last year
PA
Here is a list of the Homebase locations that were placed on the market:
- Abingdon, Oxfordshire
- Alnwick, Northumberland
- Altrincham Retail Park, Manchester
- Junction One Retail Park, Antrim, Northern Ireland
- Barnstaple, Devon
- Basildon, Essex
- Basingstoke, Hampshire
- Shane Park, Belfast
- Berwick upon Tweed, Northumberland
- Biggleswade, Bedfordshire
- Battery Retail Park, Birmingham
- Bishop Auckland, County Durham
- Bracknell, Berkshire
- Enterprise Five Retail Park, Bradford
- Branksome, Poole
- Bridgend Retail Park, Bridgend, Wales
- Broadstairs, Kent
- Bury St. Edmunds, Suffolk
- The Orbital Retail Centre, Cannock, Staffordshire
- Horsted Retail Park, Chatham, Kent
- Cheltenham
- Greyhound Retail Park, Chester
- Discovery Park, Chichester
- Colchester Stanway, Colchester
- Gallagher Retail Park, Coventry
- Rushmore Retail Park, Craigavon
- Daventry, Northamptonshire
- Wyvern Retail Park, Derby
- Dumfries, Scotland
- Halbeath Retail Park, Dunfermline, Scotland
- Farnham Retail Park, Farnham
- Folkestone, Kent
- Drumkeen Complex, Belfast
- Retail World, Gateshead
- Gloucester
- Hamilton, Scotland
- Hanworth, Feltham, London
- Harlow, Essex
- Eddington Business Park, Herne Bay, Kent
- Tyne Valley Retail Park, Hexham
- Heath Retail Park, Honiton
- Hove, Brighton & Hove
- Hull
- Leamington Spa
- Ledbury, Herefordshire
- Moor Allerton Centre, Leeds
- Letterkenny, Republic of Ireland
- Lewes, East Sussex
- London Catford
- London Streatham Vale
- Luton
- South Aylesford Retail Park, Maidstone
- Milton Keynes
- Navan Retail Park, Republic of Ireland
- Newcastle under Lyme, Staffordshire
- Norwich Hall Road
- Norwich Sprowston
- Madford Retail Park, Nottingham
- Oban, Scotland
- Oldbury, West Midlands
- Wyndham Retail Park, Portishead
- Romford, Essex
- Saffron Walden, Essex
- Sleaford, Lincolnshire
- St Albans
- Sudbury, Suffolk
- Wrekin Retail Park, Telford
- Truro, Cornwall
- Tunbridge Wells
- Upton, Wirral
- Waltham Cross, Hertfordshire
- Waterford, Republic of Ireland
- Wolverhampton
- Worcester.
