Australian retail conglomerate Wesfarmers Ltd. has received offers for its struggling British DIY chain Homebase Group Ltd. from three investment firms and could reach a decision in short order, Sky News reported May 23, citing sources.
Alteri Investors and Hilco are the leading candidates to buy the chain, while Endless has also reportedly sent a bid to Wesfarmers. The two leading investment firms plan to restructure Homebase by closing a significant number of its 220 stores, which could put thousands of employees out of work, according to the report.
Sources told the news outlet that Wesfarmers could receive at least £75 million for the chain, which is part of its Bunnings Warehouse division and employs over 11,000 people.
Wesfarmers reportedly started approaching potential buyers earlier this year after Homebase, which it acquired two years ago, started losing about £20 million per month, according to the report.
The Australian company replaced the chain's British management team with Australian leaders, expecting the U.K. to embrace the Bunnings retail model, the report said. This approach reportedly backfired in the last 18 months, Sky News reported, when Wesfarmers abandoned Homebase's popular business lines, which then forced the retailer to write off over £500 million.
