Staff at DIY chain Homebase and its customers have been issued advice as the so called ‘Del Boy billionaire’ behind The Range edged closer to a rescue deal.
It emerged this morning that Chris Dawson is in talks to snap up around 70 Homebase stores as part of a pre-pack administration.
Speaking to The Telegraph, Dawson said he was “delighted” to be able to save “so many stores and jobs”.
If the deal goes through, the move could save around 1,500 roles. However, it would raise doubts over the future of at least 1,700 more roles.
The deal would come after The Range bought the Wilko name and intellectual property after it collapse into administration last year.
It is understood that Teneo is to be appointed to oversee the administration process.
Homebase is currently owned by Hilco Capital after it bought the brand from Wesfarmers in 2018 for £1.
The Range, Homebase and Teneo have been contacted for comment by City AM.
In the wake of the news Kevin Mountford, savings expert and co-founder of Raisin UK, has shared his advice for employees and customers of Homebase.
How will Homebase employees be affected?
He said: “The news that… roles at Homebase may soon be redundant will be massively disappointing for their employees who will be hoping for a rescue deal. Here are my top tips for those facing redundancy:
Read up on your rights, especially when it comes to redundancy pay and settlements.
Look at your existing debts. Do you have outstanding balances on credit cards that you can pay off now? It may be wise to settle these whilst you can be sure on your current income.
Look at your monthly outgoings, is there anything you could negotiate a payment holiday for? This may help whilst you plan your next move in the short-term.
Prepare your CV and think about your future career options. If it seems like your job role is definitely at risk, start to think about other options and reach out to people who may be able to assist in your job search.
Some stores may be purchased by other retailers, including competitors. Other retailers will be offering interviews to affected employees to support them in getting new retail jobs.
How will customers be impacted?
Mountford added: When a business enters administration, they do tend to operate as normal whilst they wind down the business – however if acquired, it could mean Homebase won’t have to fulfil any existing orders, refunds, or guarantees.
“This means that if you have a pending order, this may not be fulfilled and you may not receive a refund from the potentially-defunct Homebase business.
“In this instance, if you paid by credit card – you should contact your provider and initiate a section 75 refund.
“Additionally, if you paid by finance, you should contact the provider (who most likely is Novuna).
“As your debt is with the provider, you will still be expected to make payments or risk your credit score.
“Gift cards may also soon be no longer redeemable at Homebase, and you will most likely not be able to redeem them at any of their stores if they get acquired. In this instance, you should most likely contact the issuer of the gift card and to see what options are available.”
Mountford also said: “What could make a purchase of Homebase so difficult and ultimately lead to the closure of over 130 stores is that, simply, Homebase and competitors are usually situated right near each other at retail parks.