250 Homebase stores sold for one Pound

Wesfarmers, the Australian owners of Homebase who paid £340m for the retailer two years ago has sold the DIY chain for £1 to restructuring specialist Hilco, ending its £1bn loss-making foray into the UK. Hilco which rescued music chain HMV in 2013.

The 24 stores which were converted to the Bunnings brand will revert to the Homebase name.

Paul McGowan, CEO of Hilco Capital said his experience and business acumen make the team at Hilco among the best in the country and the management at Homebase “ have a good plan to take the business forward and we will be supporting that with serious amounts of investment”. Homebase had already drawn up a proposal closing about 40 underperforming stores. The restructuring of 250 Homebase stores which employs 11, 500 workers would result in job losses.