DIY and garden centre giant collapsed into administration owing with £803m

DIY and garden centre giant collapsed into administration owing with £803m Homebase, which had 135 stores across the UK, was forced to close its physical stores after collapsing into administration in November 2024, owing a total of £803m and resulting in around 2,300 job losses. A major garden centre chain had £803million of debts when it went into administration, it has emerged. Homebase was forced to shut the bulk of its outlets after going under in 2024, resulting in approximately 2,300 job losses. The DIY superstore chain which operated 135 branches nationwide, entered administration in November 2024 following substantial financial losses. Bosses at the time pointed to the cost of living crisis, soaring inflation and falling consumer spending as the primary factors behind their difficulties. The business, which had 3,446 staff members, was divided up and sold to different buyers, with the brand moving online while its physical premises were closed. According to The Reading Chronicle, Gavin Park, Gavin Maher and Adele MacLeod, of Teneo Financial Advisory, were appointed as joint administrators. They said: "These losses are attributed to a number of factors affecting retail and the DIY sector, including a decline in consumer confidence and spending, high cost inflation, high interest rates, expensive freight costs, shipping delays and poor weather particularly through the peak spring and summer seasons." Following the collapse, Homebase, including 70 outlets, was acquired by CDS (Superstores International) Limited, owned by Chris Dawson and trading as The Range and Wilko, for £25.6m. This also saw 1,150 staff transferred to the new operation while the remaining branches closed in March 2025, reports the Express. The administrators revealed that approximately 2,300 workers were made redundant, with claims totalling around £938,000. Wells Fargo Capital was owed £20.1 million, which was repaid in full, while Ark Finco was owed £80 million, of which £57.5 million has been paid to date. Additionally, administrators recouped £10.2 million in unpaid Pay As You Earn (PAYE) claims and employee national insurance contributions. The firm also carried £693 million in debt to creditors across 1,299 claims, including a single unsecured claim from Ark Finco amounting to £523 million. The administrators stated: "On present information, it is not anticipated that there will be sufficient funds to enable a distribution to be made to unsecured creditors, with the exception of the prescribed part distribution referred to below." They went on to say: "It had previously been anticipated that realisations from the sale of certain Scottish leaseholds would be available to unsecured creditors. "During the period, the joint administrators received further legal advice in respect of these leaseholds, which directed that there was valid fixed charge security over the proceeds and therefore these proceeds were not available to unsecured creditors. "It is anticipated that there will be a maximum prescribed part fund available for distribution to unsecured creditors of £800,000."