Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Homebase owes £650m unsecured debt as administration details emerge

by January 31, 2025
January 31, 2025
Homebase owes £650m unsecured debt as administration details emerge

Homebase collapsed into administration in November, revealing it owed more than £650 million to unsecured creditors including AO World, Halfords, and The Hut, according to documents newly filed at Companies House.

Teneo, the appointed administrator, disclosed that unsecured non-preferential creditor claims totalled £657 million—a sum that includes around £100 million owed to trade creditors. Unsecured creditors rank behind secured creditors in any repayment process, making it unlikely they will recoup outstanding funds.

The breakdown of debts reveals that Homebase’s directors listed a £2.9 million liability to Close Brothers for till systems, £1.7 million to XPO for logistics services, and approximately £750,000 to AO World for appliances linked to Homebase’s kitchen business.

Among the largest unsecured debts is an intra-group claim of about £524 million owed to Ark Finco. Owned by Paul McGowan, executive chairman and founding partner of Hilco, Ark Finco had already provided an £80 million working capital facility, fully drawn at the time of administration. Teneo is seeking legal advice on the security status of the intra-group debt, which may yet alter the outcome for creditors.

Jonathan De Mello, an independent retail analyst, said: “The huge level of debt Homebase accrued over the years is an all too familiar story, with various creditors left out of pocket—and no hope of recovering monies owed—as a result of the failure of the business.”

Homebase’s mounting financial troubles came to a head after Wells Fargo—concerned about the company’s challenging trading prospects—declined to extend a £95 million lending facility due to expire in December. With no further financing options, directors opted for an administration process.

Immediately following Teneo’s appointment, 70 Homebase stores, along with the brand and associated intellectual property, were sold as part of a pre-pack deal reportedly worth about £30 million. The purchaser was Chris Dawson, owner of The Range and Wilko, while ownership under Hilco Capital had lasted since 2018 when Hilco bought Homebase from Wesfarmers for £1.

Homebase’s trading fortunes saw a brief upswing during the pandemic in 2020 and 2021, amid strong consumer demand for DIY and garden supplies. However, the following years proved more difficult, with the company eventually reporting losses of £59.3 million.

Auditors raised “material uncertainty” about Homebase’s ability to continue trading once its key Wells Fargo loan facility neared its end. Attempts to refinance or find a buyer were ultimately unsuccessful, culminating in the November administration.

Although Teneo continues to assess claims, the significant level of secured and unsecured liabilities—along with “no achievable refinancing or legally binding compromise of debts”—means many creditors face steep losses, with the final amounts still subject to ongoing review.

Read more:
Homebase owes £650m unsecured debt as administration details emerge

0
FacebookTwitterGoogle +Pinterest
previous post
Fevertree taps Molson Coors with £71m stake sale to fuel US growth
next post
Innovate UK pauses flagship grants scheme for SMEs amid major review

You may also like

How Much Does It Cost to Build a...

March 21, 2025

Men’s sexual health app faces £400k HMRC clawback...

April 28, 2025

Legal and Ethical Considerations: Safeguarding Employee Rights in...

December 21, 2023

Evri to create 9,000 jobs in competition with...

July 29, 2024

4 Promising Customer Experience Trends (and What They...

November 11, 2022

Generative AI Set to Disrupt Jobs and Widen...

June 18, 2024

Work on £1.75bn Midlands Rail Hub to Commence...

February 29, 2024

Airbnb shows travellers are bucking recessionary fears

February 15, 2023

Revenues top £25M at Bricks and mortar firm...

January 30, 2023

Arti Modi Discuss How She Is Helping Change...

November 30, 2022

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • House of Lords AI summit at London Tech Week warns of ‘skills cliff edge’ threatening UK’s competitive future

      June 11, 2025
    • Tariff tensions force Spain’s food giants to seek markets beyond the US

      June 11, 2025
    • Sizewell C secures £14.2bn state boost – but energy savings won’t come for a decade

      June 11, 2025
    • Michelle Mone-linked PPE firm faces £122m high court battle with government

      June 11, 2025
    • Entrepreneur turned away from London Tech Week for bringing baby sparks industry backlash

      June 11, 2025
    • Global economy faces bleak outlook as World Bank warns of worst decade since 1960s

      June 11, 2025

    Categories

    • Business (8,183)
    • Investing (2,027)
    • Politics (15,591)
    • Stocks (3,141)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved