Loudwater Homebase store to remain open for now despite administration

Homebase in Loudwater is due to continue trading, a company spokesperson confirmed after 'Administration' signs were put up on all of its windows. 

Concerns were raised on social media that the shop may shut, fueled by the recent closure of nearby Carpetright, also based at Knaves Beech Business Centre. 

But after the company administrators completed the sale of up to 70 of its UK stores to retail group CDS, the company has confirmed that the remaining 49 sites will remain open until they are handed over to CDS. 

The Loudwater store is one of the 49 remaining stores that haven't been sold, but it is unclear at this stage when it will be sold and if it will continue to be branded as Homebase.

READ MORE: Carpetright Loudwater closes ahead of opening of new Tapi store

Damian McGloughlin, CEO of Homebase said described the last three years as "incredibly challenging" adding that a "decline in consumer confidence and spending following the pandemic has been exacerbated by the impact of persistent high inflation, global supply chain issues and unseasonable weather."

He said: "Against this backdrop, we have taken many and wide-ranging actions to improve trading performance including restructuring the business and seeking fresh investment.

“The sale of up to 70 UK stores to CDS is expected to protect up to 1,600 jobs and the remaining 49 UK stores will continue to trade as normal while the Administrators complete discussions with potential buyers.

"I want to thank our team members and supplier partners from the bottom of my heart for their hard work and commitment over many years.”

Homebase, Loudwater (Image: NQ)

Gavin Park, Gavin Maher and Ademe Macleod of Teneo Financial Advisory Limited were appointed as joint administrators of HHFL Limited and Hampden Group Limited that both trade under the Homebase name. 

At the date of administrators being appointment, Homebase employed around 3,600 staff across its Head Office and stores, including those employees expected to transfer to CDS as part of the transaction.

The company says there will not be any immediate redundancies and all employee wages and benefits will be paid for their period of employment.

Customer orders will also still be fulfilled as far as possible and arrangements will be put in place to allow gift vouchers to be used. 

Gavin Maher, Joint Administrator, added: “We appreciate that this is a very difficult and uncertain time for all involved.

"The sale to CDS preserves the Homebase brand and secures a significant number of jobs and we hope to complete sales of additional stores over the coming weeks.

"The remainder of the stores will continue to trade whilst buyers are sought and we would encourage any party with an interest to get in touch.

"We thank Homebase’s team members and other stakeholders for their continued support.”