UK garden centre giant plunged into administration owing £803m | UK | News
A major garden centre retailer plunged into administration owing a total of £803 million, it has been revealed. The company was forced to close the majority of its stores after collapsing in 2024, leading to the loss of around 2,300 jobs.
Homebase, which had 135 stores across the UK, collapsed into administration in November 2024 after suffering heavy financial losses. Bosses at the time cited the cost of living crisis, high inflation and a decline in consumer spending as the main reasons behind their struggles. The business, which employed 3,446 workers, was carved up and sold to various buyers, leading the brand to move online while its physical stores were shut.
As reported by The Reading Chronicle, Gavin Park, Gavin Maher and Adele MacLeod, of Teneo Financial Advisory, were appointed as joint administrators. They said: “These losses are attributed to a number of factors affecting retail and the DIY sector, including a decline in consumer confidence and spending, high cost inflation, high interest rates, expensive freight costs, shipping delays and poor weather particularly through the peak spring and summer seasons.”
After collapsing, Homebase, including 70 stores, was sold to CDS (Superstores International) Limited, owned by Chris Dawson and trading as The Range and Wilko, for £25.6m. This also saw 1,150 employers transferred to the new business while the remaining stores shut in March 2025.
The administrators said around 2,300 workers lost their jobs, totalling claims of around £938,000. Meanwhile, Wells Fargo Capital was owed £20.1 million, which was repaid in pull, and Ark Finco was owed £80 million. So far, payments of £57.5 million have been made to Ark Finco.
Administrators also received £10.2 million for unpaid Pay As You Earn (PAYE) claims and employee national insurance contributions. The company also owed £693 million to creditors, across 1,299 claims, including one unsecured claim submitted by Ark Finco for £523m.
The administrators said: “On present information, it is not anticipated that there will be sufficient funds to enable a distribution to be made to unsecured creditors, with the exception of the prescribed part distribution referred to below.”
They continued: “It had previously been anticipated that realisations from the sale of certain Scottish leaseholds would be available to unsecured creditors.”
“During the period, the joint administrators received further legal advice in respect of these leaseholds, which directed that there was valid fixed charge security over the proceeds and therefore these proceeds were not available to unsecured creditors.
“It is anticipated that there will be a maximum prescribed part fund available for distribution to unsecured creditors of £800,000.”
