Bunnings to convert to Homebase
Date published: 29 May 2018
Bunnings Warehouse, Sandbrook Park
The Bunnings store at Sandbrook Park in Rochdale will be converted to the Homebase brand following a management buy-out.
Wesfarmers has agreed to divest the Homebase business in the United Kingdom and Ireland to a management buy-out team led by CEO Damian McGloughlin supported and funded by Hilco, the retail turnaround specialist.
Under the terms of the agreement, the purchasers will acquire all Homebase assets, including the Homebase brand, its store network, freehold property, property leases and inventory. The 24 Bunnings pilot stores will convert to the Homebase brand following completion.
Homebase was acquired by Australian company, Wesfarmers in 2016. The investment has been disappointing for Wesfarmers, with problems arising from poor execution post-acquisition.
Whilst the operating performance of the business has improved in recent months under the new management team led by Damian McGloughlin, Wesfarmers took the decision to exit the UK following a comprehensive review of the business.
Damian McGloughlin, CEO, said: “We are very pleased to have reached an agreement with Hilco and this marks an exciting new chapter for Homebase. With Hilco’s support we have the commitment of an experienced partner, substantial additional capital, stability for the business and the opportunity to reinvigorate a brand that has been a mainstay of UK retail for over 40 years.
"I would like to thank our team members for their commitment during what has been a testing time for the business. The momentum we have seen in the business over recent peak trading periods and their dedicated support to our customers gives us a strong platform from which to build.”
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