DIY retailer Homebase could be heading for a partial collapse, putting thousands of jobs at risk, amid reports that the chain has appointed insolvency experts with a potential buyer of parts of its 130-store estate also circling.

Employees and customers will be watching closely as the company behind The Range homeware outlets, is  reportedly planning a last-minute rescue deal which could see him buy as many as 70 Homebase stores.

If the buyout deal goes ahead, it could see about 1,500 jobs saved, but at least 1,700 others would still be in doubt, Sky News reported.

What should Homebase employees be aware of?

Kevin Mountford, savings expert and co-founder of Raisin UK, shared his advice for employees.

  1. Read up on your rights, especially when it comes to redundancy pay and settlements.
  2. 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.
  3. 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.
  4. 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.
  5. 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 jobs.

To read about all of your rights visit the Gov.uk website.

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How will Homebase customers be affected?

Kevin says: “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," says Kevin.

"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."