£100m offer to woo buyers for failed Aussie DIY chain

HOMEBASE’S Australian owner could offer incentives of up to £100m for buyers willing to take on the troubled DIY chain.

Wesfarmers, which has faced hefty losses on Homebase since its £340m takeover in 2016, is trying to tempt bidders with a financial package to secure a quick escape from the botched deal.

It had planned to convert Homebase stores into its successful Australian DIY chain Bunnings. So far, 19 have been opened, but overstocked shops and ill-judged product ranges have not appealed to British customers, putting it on track to lose around £190m on sales of £1bn.

Wesfarmers is said to have appointed restructuring specialists Alvarez & Marsal, which recently advised Toys R Us before its collapse earlier this year with the loss of almost 3,000 jobs.

Homebase has nearly 250 stores employing almost 12,000 people. Wesfarmers plans to close up to 40 sites, putting 2,000 jobs at risk.