Bunnings stores in Kent to disappear after Homebase sold for £1

Bunnings DIY stores in Kent will switch back to being Homebase after the firm's Australian owners sold the struggling company for just £1.

Homebase was bought for £340million in 2016 by Australian company Wesfarmers who dominate the market in its home country with its Bunnings brand.

But its efforts to introduce Bunnings to the UK has proved a disaster, with the company saying it expects to lose between £200-230m as a result of the sale to Hilco Capital - an investment firm which specialises in turning around failing businesses.

Barry McGuigan and staff at the opening of the Bunnings Warehouse on the Mill Way Retail Park, Sittingbourne last summer
Barry McGuigan and staff at the opening of the Bunnings Warehouse on the Mill Way Retail Park, Sittingbourne last summer

Under the terms of the agreement, the buyer will acquire all Homebase assets, including the Homebase brand, its store network, freehold property, property leases and inventory for a just £1.

The 24 Bunnings pilot stores will convert to the Homebase brand promptly following completion.

The Herne Bay store's conversion from Homebase to Bunnings was only completed in recent weeks.

Bunnings in Sittingbourne will change back to Homebase
Bunnings in Sittingbourne will change back to Homebase

It remains unclear if Hilco will initiate a store closure programme following the takeover. It previously revived HMV after its collapse.

Wesfarmers managing director Rob Scott said: "Homebase was acquired by Wesfarmers in 2016. The investment has been disappointing, with the problems arising from poor execution post-acquisition being compounded by a deterioration in the macro environment and retail sector in the UK.

"While it is important that we learn from this experience, this should not discourage our team from being bold and diligent in pursuing opportunities to create shareholder value.

Bunnings stores will now revert back to Homebase brand
Bunnings stores will now revert back to Homebase brand

“We acknowledge the past six months have been particularly challenging for the BUKI (Bunnings UK & Ireland) management and our team members in the UK and Ireland and we thank them sincerely for their hard work and commitment.

"The operating performance of the business has improved in recent months under the new management team led by Damian McGloughlin and he will continue to lead Homebase in delivering management’s turnaround plan.

“We wish Damian and the team well during the transition and as they take the business into its next chapter under a new owner with a track record of retail turnaround in the UK.”

The takeover is expected to be completed by June 30.

Close This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies.Learn More