Homebase, which was once one of the largest British home improvement retailers, is on the brink of collapsing into administration, citing a big reduction in consumer spending due to cost of living pressures.
According to data, it’s estimated that over six thousand Homebase employees could face immediate redundancies, and countless customers impacted by changes to returns policies.
Kevin Mountford, savings expert and co-founder of Raisin UK, shared his advice for employees and customers of Homebase.
How will Homebase employees be affected?
The news that over six thousand roles at Homebase may soon be redundant will be massively disappointing for their employees who will be hoping for a rescue deal.
For those who are facing redundancy employees should read up on your rights, especially when it comes to redundancy pay and settlements.
Homebase could be set for administration
Look at your existing debts. Do you have outstanding balances on credit cards that you can pay off now? It may be wise to settle these whilst you can be sure on your current income.
Look at your monthly outgoings, is there anything you could negotiate a payment holiday for? This may help whilst you plan your next move in the short-term.
Prepare your CV and think about your future career options. If it seems like your job role is definitely at risk, start to think about other options and reach out to people who may be able to assist in your job search.
Some stores may be purchased by other retailers, including competitors. Other retailers will be offering interviews to affected employees to support them in getting new retail job.
How will Homebase customers be affected?
When a business enters administration, they do tend to operate as normal whilst they wind down the business – however if acquired, it could mean Homebase won’t have to fulfil any existing orders, refunds, or guarantees.
This means that if you have a pending order, this may not be fulfilled and you may not receive a refund from the potentially-defunct Homebase business. In this instance, if you paid by credit card – you should contact your provider and initiate a section 75 refund. Additionally, if you paid by finance, you should contact the provider (who most likely is Novuna). As your debt is with the provider, you will still be expected to make payments or risk your credit score.
Gift cards may also soon be no longer redeemable at Homebase, and you will most likely not be able to redeem them at any of their stores if they get acquired. In this instance, you should most likely contact the issuer of the gift card and to see what options are available.”
Mountford added, “What could make a purchase of Homebase so difficult and ultimately lead to the closure of over 130 stores is that, simply, Homebase and competitors are usually situated right near each other at retail parks.
With the success of competitors like B&Q and even B&M, the home improvement retail market is highly competitive and the increased cost-of-living crisis has made consumers reassess the need for house refurbishments.
Regardless, Homebase would leave a massive hole in retail parks across the country and is a true reminder of a volatile retail industry as many households continue to struggle with the cost-of-living crisis.
