UK DIY News
Homebase close to securing deal to buy Bathstore
Home Improvement retailer Homebase is expected to secure a deal this weekend that will see it acquire the 135 store Bathstore chain, the UK's largest bathroom specialist, which fell into administration three weeks ago.
Read - Bathstore collapses into administration.
The Bathstore business collapsed at the end of June, putting all stores and over 500 jobs at risk and since then administrators BDO have been searching for a buyer to save the chain.
According to the Telegraph, negotiations are expected to be finalised this weekend, although no-one was available from either BDO or Homebase to comment on the breaking news.
Read - Will Hilco swoop on Bathstore?
The acquisition of Bathstore by Homebase is expected to lead to Bathstore concessions appearing in the Homebase chain, alongside concussions for Ponden Home, Silentnight and Tapi Carpets.
Read - Homebase agrees concession partnership with Tapi.
Owner American billionaire Warren Stephens, who also withdrew financial support for UK manufacturer British Ceramic Tile in January of this year, leading to the businesses collapse into administration and closure, did not want to inject more cash to keep Bathstore afloat.
The company, which opened its first store in Croydon, south London, nearly 30 years ago, has already made 89 people redundant at its head office in Welwyn.
One of the joint administrators, BDO business restructuring partner Ryan Grant, said in June: “Despite significant investment into the business over the past five years, Bathstore has struggled to overcome the well-documented challenges facing the UK retail sector.”
He added: “The appointment was made after several months of difficult trading, and the failure of ongoing talks to find a buyer for the business. Bathstore is continuing to trade in administration, whilst the administrators seek a buyer.”
Source: Insight DIY Team
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