Former owner of Comet bidding for troubled retailer Homebase
OPCAPITA, the former owner of Comet, has put in a bid to buy troubled retailer Homebase.
Homebase’s Australian owner, Wesfarmers, is looking to sell the business and is offering a dowry in the region of £100m to entice suitors.
Retail-focused Opcapita was established in 2006 by former banker Henry Jackson, and the private equity firm raised €350m (£306m) from investors in 2016.
Opcapita would be a controversial buyer for Homebase due to its mixed past in the UK retail sector.
The private equity firm bought Comet in 2012, but the retailer went into administration nine months later after credit insurers pulled cover on suppliers’ goods.
Opcapita won back millions from Comet’s administration as the secured creditor of the retailer, but taxpayers were left with a £50m bill.
Opcapita has had some suc- Ulster Business that he hoped to achieve a “proper partnership between the public and private” sectors.
The Kildare man is also known for helping the BBC with the move of much of its operations to Salford.
He added: “If we get our act together, Belfast can be the best city on this island, if not in Europe or the rest of the world.
The potential is there — the workforce, the connectivity, the quality of life.” cess with UK retailers, however, having restored Game Digital, which subsequently floated on the stock market in 2014.
Other bidders linked with Homebase include Hilco, Endless, Alteri and Lion Capital. Investment bank Lazard has been appointed to sound out potential buyers.
Value retailer B&M has also been named as a possible suitor for the ailing DIY store.
Wesfarmers has also brought in Alvarez & Marsal to explore options besides a sale, with store closures remaining a possible route for the business.
Wesfarmers snapped up
Mr Kane said that revised plans addressed any issues with original templates including “connectivity” and “being able to walk home safely at night, from the city centre”.
“We want to put a spade in the ground this year, and complete by 2023. We have significant confidence in Northern Ireland. The city has huge advantage and will be hugely attractive to inward investment,” he added.
Some 5,300 jobs will be created through the scheme. Homebase is high on Opcapita’s wanted list
Homebase from Home Retail Group two years ago, but the chain’s future was thrown into doubt when Wesfarmers announced £584m in writedowns from the acquisition.
Rob Scott, Wesfarmers managing director, warned that up to 40 stores could close — putting 2,000 jobs at risk.
Wesfarmers is known for its Bunnings chain in Australia, and attempted to import the home improvement brand to the UK by converting 19 Homebase stores into the Bunnings format.
However, the fast pace of the transition gave Wesfarmers very little time to introduce the Bunnings brand, which is highly successful in Australia, to the UK consumer.
Wesfarmers also fired Homebase’s senior management team, alongside more than 150 middle managers, soon after its doomed acquisition of the retailer.
Homebase and Opcapita declined to comment.