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Home Retail Group to consider selling off Homebase?

Published: 28 July 2014
It has been reported that Home Retail Group is planning to sell its £1.5bn Homebase business so it can focus on bolstering the stronger Argos chain.
Home Retail Group to consider selling off Homebase?
Home Retail Group has previously considered selling the DIY retailer, but the option has once again reared its head as group chief executive John Walden commences a company-wide strategic review of the group.

A final decision will be made in the coming weeks, according to the Mail on Sunday, which first reported on the potential sale.

A source told the newspaper that Homebase would most likely be sold to a private equity firm rather than spinning it off on the stock market.

The source added: "In the last few months it is back on the table and has become one of the key considerations in Walden's review.

"The question is straightforward: would you rather invest all your available resources into developing Argos or have to split it between the two?"

The Home Retail board would need to consider whether it is possible to sell a business that is in the early stages of a turnaround or if it would have to hand the new owners a dowry.

Another source added: "Any new owner of Homebase would undoubtedly need money to invest into improving Homebase and might expect Home Retail to make a contribution if they sold it tomorrow."

Earlier in the year Homebase reported a like-for-like rise in sales of 5.9% to £1,489.2m, whereas Argos reported a like-for-like sales increase of 3.3% to £4,051.1m.

A spokesman for Home Retail Group said the group declined to comment on market speculation.

Comments

28 July 2014 01:12:00
By David Knight
I used to work for Focus and Homebase in Evesham I left Homebase in june 2014 as management were unfair to me and I could see the business going down hill turns out I was right
28 July 2014 01:11:00
By Tiony
Stock ruining down they is going get sold soon
They cut hours back back old way sort out head office
28 July 2014 01:10:00
By Tony
Being here that clos blappor well bad hombase own would
28 July 2014 01:09:00
By Tony
What piss joke told they no more clos head office thing own would thing sort out tell staff haapy is sold or not
28 July 2014 01:08:00
By Baseworker
There we go again, Homebase is Evesham was announced as a closure yesterday, only weeks after the board announced that there would be a halt to closures an a disition to trade the chain and stabilise the ship and give some stability to the staff,as per the last closures the team are only getting the basic redundancy unlike the Base and field teams that got a enhanced package with over twice the basic package, so much for The new open and honest Managment team
28 July 2014 01:07:00
By Tony
It a joke head office act out
28 July 2014 01:06:00
By Tony
Head office sort act out let company stick
28 July 2014 01:05:00
By Spell check
Any chance of communicating in English , you might find the spell check function useful when trying to make a point .
28 July 2014 01:04:00
By Tony
Yes bad head office not tell going on you your act sort out head office sort mass out go into ton
28 July 2014 01:03:00
By Anthony
What a joke get it sort out get sort out head office
28 July 2014 01:02:00
By Inside truth
Yes it is true, the company is up for sale, in fact it may even be given away with a sizeable payment to get it off their hands...it has been mismanaged for 2 years by senior leadership and is getting worse, no direction, no vision and no idea what they stand for....sorry if you work there but you will understand these comments more if you do
28 July 2014 01:01:00
By 112
Is this true are they going to sell it or not not very good it a joke

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