Homebase was bought by Wesfarmers in 2016
Jack Torrance
25 MAY 2018 • 7:58 AM

The Australian owner of Homebase has thrown in the towel, agreeing to sell the struggling home improvement chain for £1 after a bungled attempt to rebrand it as part of its Bunnings business.

Wesfarmers will book a loss of between £200m and £230m on the sale to HMV owner Hilco Capital, which will change all 24 of the stores converted to Bunnings back to the Homebase brand.

Rob Scott, Wesfarmers managing director, admitted Homebase had been hampered by his company’s “poor execution” after the takeover, compounded by a consumer slump that has swept the retail industry in recent months.

He added: “While the review confirmed the business is capable of returning to profitability over time, further capital investment is necessary to support the turnaround.”

Wesfarmers said Damian McLoughlin, who was hired to run the business in June, will stay put after the sale.

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