Background
Originating as a joint venture between Sainsbury’s and GB Inno in 1979, Homebase is the UK’s second largest home improvement and garden retailer. The business was acquired by Australian conglomerate, Wesfarmers, in 2016 with the intention of converting the stores to its Bunnings Warehouse format.
Homebase had seen declining sales since 2014 and the losses widened significantly under Wesfarmers’ ownership, with the business posting an operating loss of £128m in 2017 and a further 10.6% reduction in sales in 2018. By early 2018, Wesfarmers had resolved to exit the UK market and in May 2018 agreed to sell Homebase.