Homebase Ireland makes 1 Million Loss

Markd518

Just read Homebase Ireland made a 1 Million Loss will probably follow same fate as argos soon

Jim_Hodge

The loss seems to be due to exceptional costs, Covid assistance repayment and fixed asset impermeant. I wouldn't write them off just yet.

JVince

B&Q are in the midst of agreeing to purchase the Irish stores.

No overlap except possibly Waterford.

Deal should be announced soon ( it was reported and b&q mentioned it in a stock market filing).

10-10-20

The stock-levels and general state of the place in Homebase Nutgrove was shocking bad the last two times that I was there. Gaps on every shelf and pallets of not much rammed everywhere. I wasn't impressed.

Markd518

Oh didn't realise that, I take it they would just rebrand to b&q rather than keep the homebase brand ?

standardg60

https://www.boards.ie/discussion/comment/122036063#Comment_122036063

Not surprised at that, more so that they've lasted this long here, it's just never really resonated with the public here for whatever reason.

JVince

https://www.boards.ie/discussion/comment/122036072#Comment_122036072

Yep, full rebrand. Homebase brand has no value.

SVI40

Over priced place. Some of their offerings were 20% more expensive than Woodies, who are expensive as it is.

byte

An article I found on The Times about it.

Today, I learned that B&Q and Screwfix are under the one umbrella, Kingfisher.

https://www.thetimes.co.uk/article/homebase-may-disappear-from-ireland-as-kingfisher-circles-xzzgdvnsl

Markd518

They would have a good share of the DIY market if they buy the homebase stores then .

Kaisr Sose

https://www.boards.ie/discussion/comment/122036287#Comment_122036287

Kingfisher is big..really big. Owning Castorama in France and other countries.

Homebase was competitive at one stage. Loosing it won't do anything for competition in this sector.

road_high

Brexit related issues I’d say are not being kind to U.K. based retailers operating here. The paperwork to avoid tariffs and customs charges must be quite onerous. Most of their stuff is likely made in the far east and imported to the U.K. and distribution from there to here. How does that work in avoiding rules of origin issues? I assume it means they need a much bigger entity based here or in the EU

Dav010

I find it a bit on the expensive side myself, but I do use Homebase a lot because it has so much under the one roof. There probably isn’t to many Saturdays I’m not in there picking up garden/home stuff. I really hope they don’t downsize and start closing stores.

JVince

Looks like this could be agreed in the next few weeks.

Homebase UK is on the sale block.

The Range is favourite to buy the UK business. They could buy the Irish part too, but B&Q are the most likely.

Expect a massive clearance sale soon.

AMKC

https://www.boards.ie/discussion/comment/122405343#Comment_122405343

I hope The Range buy it here too that way it stays seperate from B&Q, Screwfix etc.

JVince

https://www.boards.ie/discussion/comment/122405524#Comment_122405524

I've been to The Range once - found it to be an appalling store. Can't understand how it does well.

Shoog

BandQ are an entirely better store so hopefully it will drag up the Homebase Stores.

riddles

the amount of waste on plants must be shocking - a hose right beside them and no one waters them.

afatbollix

Isn't Brexit great!

Absolute gobshites.

JVince

https://www.boards.ie/discussion/comment/122405685#Comment_122405685

Nothing whatsoever to do with brexit. Hilco are an investment company. They buy failing retail names, try and build them up and then sell for a profit.

They bought Homebase for £1. The rumoured sale price is close to £100m

Nice return.

Markd518

Looks more likely b and q to buy the Irish stores I'd say. Carpet Right in trouble too on the verge of administration in the UK another one bites the dust

JVince

https://www.boards.ie/discussion/comment/122406088#Comment_122406088

Original owner will take it in a prepackaged administration and close most stores.

Carpetsh1te (as many call it) was stuck in the 90's and did not change even after an administration in 2018.

It is way overpriced but even with gross margins of a whopping 61%, they still lost money as consumers are realising just how expensive they are.

I remember several years ago getting a quote and a small independent local flooring guy was 30% cheaper for the identical flooring

SVI40

https://www.boards.ie/discussion/comment/122406016#Comment_122406016

Generally, when they buy for £1, they also take on any debt, so it may not be such a significant return.

JVince

https://www.boards.ie/discussion/comment/122409602#Comment_122409602

They did not take on any debt. Wesfarmers booked a whopping £760m loss on the foray into the UK.

Hilco then proceeded to close dozens of loss making stores and reverted back to what Homebase was previously.