The deal will see Laura Ashley’s UK-based team retained as part of a strategy to expand Marquee Brands’ global footprint.

The move includes the opening of its first European headquarters in London and increases the retail value of Marquee Brands’ portfolio to $4bn (£3.23bn).

Marquee Brands CEO Heath Golden said: “Laura Ashley’s licensed business model and robust group of high-quality partners makes the brand a seamless addition to Marquee Brands. We are excited to harness the strong affinity for this iconic brand and drive expansion across new platforms and partnerships.

“With the existing UK team in place, we are primed and ready to leverage Laura Ashley’s seven-decade legacy to unlock its future potential as a full lifestyle brand innovating new products and categories, offering unique collaborations and engaging multi-generational audiences in key markets worldwide.”

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Gordon Brothers head of brand Tobias Nanda added: “As a firm that actively invests in and revitalises iconic brands like Laura Ashley, we acquired the British heritage brand out of insolvency in 2020 and built a flexible, scalable licensing business and a global e-commerce presence over the last four years.

“We could not be prouder of Laura Ashley’s growth under Carolyn D’Angelo’s leadership, the former president of Laura Ashley, and know the brand is in the right hands for continued global growth under Marquee Brands’ leadership.”

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The stores in Letterkenny, Navan and Waterford will join the DIY chain’s eight stores, and staff will be transferred across.

B&Q said the deal will add a combined 9,300 sqm to its portfolio in Ireland and aims to convert the spaces to its banner by the end of next year.

Chief executive Graham Bell said: “We’re delighted to be adding these three stores to our fantastic store network. We’re determined to give home improvers the choice and convenience they deserve, and these locations need a home improvement store that fulfils their need.

“We look forward to swiftly concluding the purchase and converting the stores to the B&Q brand and offer, and to welcoming our new customers to the stores and new colleagues to the B&Q family.”

Homebase was forced to call in administrators last month as its owner Hilco struggled to find a buyer and secure new funding for the business.

The retailer’s brand and up to 70 of its stores was promptly acquired by The Range and Wilko owner CDS Superstores. It confirmed on Monday that the first three Homebase stores, which will be converted into The Range superstores, will open on January 17.

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The DIY chain’s branches in Pollokshaws in Glasgow, Christchurch in Bournemouth, and Kings Heath in Birmingham will reopen their doors as The Range Superstores on 17 January.

CDS, which owns The Range, Homebase, and Wilko, said the new-format locations “combines the exceptional product variety The Range is known for with the home improvement expertise of Homebase”.

It plans to open up to 10 new stores per month, converting up to 70 Homebase locations, throughout 2025 in a move that will secure as much as 1,600 jobs.

The stores will house ‘Garden Centres by Homebase’ and selected shops will also feature ‘Kitchens by Homebase’, offering customers bespoke kitchen solutions.

CDS said the DIY chain’s website will remain transactional under the management of the Joint Administrators until it is handed over in early 2025 to which it will be immediately relaunched under its new ownership.

Group chief executive Alex Simpkin said: “We’re fully committed to retaining the best of Homebase’s heritage while introducing the broader product range and value that customers expect from us as The Range.

“While those Homebase stores acquired by CDS will continue to trade as they are during the transition period, we’re focused on ensuring a seamless transfer of these locations into our new store format.

“We’re also eager to help consumers nationwide by investing in the Homebase brand with the relaunch of www.homebase.co.uk, and expect to have this platform live to support families in all of their home improvement endeavours very soon.”

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The garden centre chain is thought to have faced another difficult year after racking up losses of £130m last year driven by high inflation and unseasonable weather dampening sales.

It is not the only retailer that sells garden goods that finds itself in a tough spot, with Homebase CEO Damian McGloughlin informing staff in late August that it was seeking new investment in the same week that it offloaded some of its store estate for a £130m cash boost.

What is going on in the world of garden centres?

Dobbies decline

Dobbies has been working with advisers at FTI Consulting on a restructuring plan that will see it close 17 stores – including all six of its Little Dobbies urban format – taking its store count down to 60 shops in a bid to “address historically uneconomical rent costs and ensure a return to sustainable profitability”. 

It will also seek rent reductions at nine further sites. It said that this, alongside “other tangible cost savings” will help it secure “its long-term future…allowing access to future investment”.

The proposals are subject to approval by creditors, and it is understood if they are not green lit then an insolvency process of some kind is likely.

It comes as the gardening retailer reported pre-tax losses had plunged to £130.8m in the 52 weeks to 5 March 2023 – a steep drop from the £21.3m loss the year before.

Sales fell 8% to £278.7m, which it attributed to the impact of “adverse weather in Spring 2022 exacerbated by the macroeconomic conditions”, as well as a delayed refinancing of its debt facilities, which involved short-term cash preservation such as discounting of stock and reduced intake that in turn affected product availability.

While Dobbies seemlingly puts some of its woes into its “historically uneconomical rent” costs, however, property expert, JDM chief executive Jonathan De Mello, argues that some of Dobbies’ issues are “of its own making”, such as its acquisition of 31 Wyevale garden centres and other smaller chains pre-Covid.

He also suggests that Dobbies investment in a new store format in 2019 “was an expensive undertaking which has not yielded the level of return on investment they perhaps had hoped for”.

Former Dobbies chief executive Nicholas Marshall agrees with De Mello that part of its challenges are self-inflicted, claiming that the business has lost sight of its core customer.

Marshall, who managed the retailer between 2017 and 2019, says that when he joined the garden centre chain its “biggest seller” was its 10-piece breakfast available in its restaurants.

“How does that fit into the middle age, middle class market? It doesn’t. It fitted into builders coming in for their breakfast,” he says, adding that at the time its in-store concessions were also “quite down market”.

A year after Marshall stepped down, the garden centre which was owned by Tesco until 2016, teamed up with Sainsbury’s to launch the grocer’s own-brand products in its sites.

Dobbies later replaced its Sainsbury’s concessions with Waitrose in 2022, which now operates shop-in-shops within 47 of its stores.

Despite the shift to cater to a more affluent customer, this summer the retailer opened outlets at its branches in Morpeth in Northumberland and Atherstone in Warwickshire, offering between 30% and 70% off products from across its homeware; outdoor living; gifts, kids and pets; and gardening range.

Homebase up for sale…again

Homebase boss McGloughlin informed staff at the end of last month that the business will “be starting conversations with potential new investors to fuel our next chapter of growth”.

“I have agreed with [current owner] Hilco that now is the right time for me to seek new investment and consider new ownership and next week we’re likely to begin an active sale process,” he told suppliers.

“What this does mean is that we will have the opportunity to explore the market and potentially benefit from fresh investment.”

His comments come days after it agreed the sale of 10 of its stores – equal to 235,000 sq ft of trading space – to former owner Sainsbury’s in a deal valued around £130m.

The move may have come as quite a surprise to many, but the garden and DIY chain has been finding ways to downsize its 140-plus store estate in the last year.

The chain’s Ledbury branch is set to be taken over by discount giant Home Bargains, while its Waltham Cross location was split for German discounter Aldi to take up half the unit.

Homebase’s search for a new investor coincides with its £95m asset-based loan from Wells Fargo expiring in December and follows reports that the retailer’s owner Hilco put the chain back up for sale in February.

The Range and Wilko owner Chris Dawson was reported to be considering putting forward an offer on the chain, however the retail entrepreneur quashed speculation last month.

“We’re looking at loads of things – any angle to open more stores and different brands,” he explained. However, he added: “I think they put two and two together and made nine.”

The ‘For Sale’ sign comes after the retailer plunged to a £85.2m loss in the year to 1 January 2023, down from the £55.6m pre-tax profit it made the year before, as sales dropped 11% to £701.2m.

Homebase has had a tumultous recent past. It was sold to private equity giant Hilco for just £1 in 2018 after Australian giant Bunnings’ botched attempt to conquer the UK by converting Homebase to its fascia.

Following the Hilco acquisition, the retailer immediately launched a CVA and restructuring programme, which resulted in 42 shop closures and more than 1,000 jobs cut.

Under ex-B&Q retail director McGloughin, Homebase’s fortunes were seemingly turned around. The DIY retailer posted a £3.2m EBITDA profit for the year ending 29 December 2019, up from a loss of £114.5m in 2018. This grew further the next year with EBIDTA hitting £61m before exceptionals.

However, in its last reported financial year, things had taken a turn for the worse as the cost-of-living crisis meant shoppers became more “cautious” with their spending.

The business posted an £84m loss in the year to January 2023, from a profit of £30m the year prior as sales plunged 11% to £701m.

It described 2022 to 2023 as a “challenging year for Homebase and retail”. The retailer said: “Customers were cautious in their spending, our costs increased significantly, including over £40m across freight and £10m on energy bills, all while consumer confidence was at an all-time low.”

However, earlier this year a spokeswoman for Homebase said it was “encouraged” by trading after its year end, which had seen the chain “reducing our losses by 70% and growing market share in over half of our categories”.

“We’re looking forward to delivering a profitable 2024 as we enter our peak trading season,” she said.

Garden centre woes

The challenges are not exclusive to Homebase and Dobbies, with the wider gardening sector also feeling the brunt of the cost-of-living crisis and weakened consumer demand.

British Garden Centres development and project manager Amy Stubbs says the weather has played havoc on trading this year.

“It’s never really felt like the season has properly started. We always normally feel like we have a bit of a rush and we can tell that the season’s kicked in.

“But this year, it hasn’t ever felt like it’s got going. It almost feels like any time it’s had a chance to start, the weather has then ruined it and it’s gone backwards again. It’s just been very stop start.”

While Dobbies has been facing the same challenging landscape, Homebase is part reliant on demand for DIY and big-ticket items., which has been hit hard this year.

GlobalData lead analyst Emily Salter says: “The DIY market fell by 0.3% in 2023 as consumers had already made any improvements to their homes during Covid-19 lockdowns, and due to the weak housing market and low consumer confidence for purchasing big-ticket items.

“These trends continued into the first half of 2024, impacting DIY demand.”

These trends will have also hampered gardening spend. However, there are some signs that the market is improving.

Nationwide Building Society reported this week that annual house price growth accelerated in September to the fastest rate seen in around two years as interest rates fall.

An uptick in housing transactions, might give the gardening market the boost that all chains, not just Dobbies and Homebase, are craving.

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The garden centre chain said it will now exit the leases of 10 loss making sites while two additional sites in Morpeth and Stapleton will move to other garden centre operators.

Dobbies added that its flagship in Antrim, which was previously earmarked for closure, will remain open following an agreement with the landlord.

At the end of September the retailer said it was planning to shutter 17 unprofitable stores, including 11 mainline sites and six Little Dobbies before the end of the year. The move is set to impact 465 of its 3,600 employees.

The garden centre chain said the restructuring plan, alongside other strategic initiatives, will “enable Dobbies to return to sustainable profitability, unlock access to future investment and deliver a strong and well capitalised platform for the business going forwards”.

A spokesperson for Dobbies said: “We’re pleased to have worked constructively with landlords on the Restructuring Plan (RP).

“The approval of the RP means we can now be focused on the future, building a strong platform for a return to sustainable profitability in our stores across the UK. Thank you to all our colleagues, customers and suppliers who supported us during this process.”

The stores set to close are:

• Altrincham on 17 December
• Gloucester on 15 December
• Gosforth on 19 December
• Harlestone Heath on 17 December
• Huntingdon TBC
• Inverness on 23 December
• King’s Lynn on 15 December
• Pennine on 15 December
• Reading on 23 December
• Stratford-upon-Avon on 23 December

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Davies, who joined the business this week, has spent the last decade in the ecommerce giant’s supply chain department and was promoted to director of operations in 2021.

CDS said his appointment follows recent external leadership appointments in store operations, property and digital “to drive transformational plans and the businesses next phase of growth”.

CDS Superstores CEO Alex Simpkin said: “Sam has a strong background in supply chain innovation, and we look forward to deploying these skills as CDS continues to grow by developing our brands and customer proposition.”

Davies added: “CDS is one of the most exciting retailers operating at present with great plans for the future. I’m looking forward to helping the business to achieve its full potential.”

The Range owner expanded its portfolio once more last month when it snapped up Homebase out of administration. It acquired the DIY chain’s brand name, intellectual property, and up to 70 UK stores in a move that saved up to 1,600 jobs.

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As the year draws to a close, Retail Gazette takes a look back at the retailers that went bust over the past 12 months.

Homebase

Homebase became the latest casualty on the high street last month when it plunged into administration after failing to secure a new buyer.

The home and DIY chain called in administrators at Teneo, the firm it had been working with to explore its cost-saving options after it sunk to an £84m loss in the year to January 2023.

Homebase’s brand name, intellectual property, and up to 70 of its UK stores was quickly snapped up by The Range and Wilko owner CDS Superstores in a pre-pack deal for £25.6m – a move that leaves 49 stores and around 2,000 workers at risk of redundancy.

The retail giant said the DIY chain’s brand will continue to run online, and the acquired stores will continue to trade as Homebase over the coming months but will re-open as The Range with a “much broader choice across garden, showroom and DIY categories”.

It is understood that M&S and Kingfisher are considering acquiring some of the chain’s remaining stores.

CTD Tiles

Tile supplier CTD Tiles was rescued from administration by Topps Tiles in August.

Topps  acquired the supplier’s brands including CTD Tiles, CTD Trade and CTD Architectural Tiles, 30 of its retail stores, selected stock and all related intellectual property.

The retailer said CTD was “complementary” to its existing businesses and that the acquired stores and assets provide it with “the opportunity to make a meaningful entry into the housebuilder segment and expand its existing share of the architect and designer segment”.

However, the deal did not include 56 CTD Tiles stores, which administrators at Interpath confirmed will be disposed of through the administration process.

The acquisition invoked ire from one of Topps Tiles major shareholders, with MS Galleon’s managing director Piotr Lipko slamming the deal  as “unequivocally irrational” and “highly detrimental” to the interests of the company.

Carpetright

Carpetright collapsed into administration in July after it failed to secure new investment.

The flooring giant was subsequently sold to its largest rival Tapi, which acquired its intellectual property, two warehouses and 54 of its stores.

Tapi said that saving the entire business was “unviable” as Carpetright had been materially loss making for a number of years and had racked up “significant debt”. It also cautioned of how the Competition and Markets Authority would view a larger deal.

At the time of its collapse, Carpetright owed at least 11 retail businesses including B&M, Furniture Village and Lidl nearly £3.5m in outstanding rent charges and some 21,000 customers £8m in outstanding orders.

It’s not the first time that Carpetright has found itself in troubled waters, with the business launching a company voluntary arrangement (CVA) in 2018 in an attempt to bring its losses under control.

The Floor Room

Carpetright’s administration quickly triggered the collapse of sister firm The Floor Room.

The flooring specialist’s 34 John Lewis concessions, standalone London store and online operation was closed by administrators at PwC “with immediate effect” in August, resulting in 201 redundancies.

Following its collapse, John Lewis said it would proactively offer roles where it can to its former partners at The Floor Room, who transferred across when it opened the concessions in 2022.

Smiffys

Ted Baker found itself in trouble in April when the brand’s UK operator No Ordinary Designer Label called in administrators.

No Ordinary Designer Label (NODL) – which licenses the brand in the UK and Europe from Authentic Brands Group (ABG) – collapsed after ABG terminated its relationship with AARC, the Dutch firm that ran the brand’s UK operation the month before.

ABG chief strategy and transition officer John McNamara said at the time: “Despite our tireless efforts, the damage done during a period under AARC in which NODL built up a significant level of arrears was too much to overcome.”

The fashion chain was forced to shutter all 46 of its stores and cut more than 700 jobs by the middle of August.

Authentic announced the following week that its US partner for Ted Baker United Legwear and Apparel (ULAC) would extend its responsibilities to run the UK operations as well. It relaunched the brand online last month.

Matches 

Frasers Group put luxury fashion etailer Matches into administration in March just three months after it acquired the business in a £52m deal from Apax Partners.

The Mike Ashley-controlled retail empire said the fashion business had “consistently missed its business plan targets and, notwithstanding support from the group, has continued to make material losses”.

It appointed administrators at Teneo to handle the process, which has since seen 273 staff members across buying, communications, analytics and marketing made redundant.

Former Matches boss Nick Beighton branded the company’s administration as “unnecessary”, claiming there was still a chance to turnaround the luxury ecommerce platform before Frasers placed it into administration.

Muji

Japanese retailer Muji filed for administration at the end of March as part of a wider reorganisation from its parent company.

The retailer’s UK stores – which include six in London and one in Birmingham – were retained in a pre-pack administration with the firm’s European holding company.

A spokesperson for the business said that “Muji will receive significant investment from its main shareholder and has plans for new stores and an improved e-commerce offer in Europe” following the restructuring.

Muji told TheBusinessDesk.com: “This is part of a planned strategic restructuring of the business and Muji’s management expect to conclude a deal shortly.

“For Muji’s colleagues and customers in Europe it is business as usual – all stores and ecommerce will continue to operate as before, and all new and outstanding orders will be fulfilled.”

Farfetch

Farfetch was sold to South Korean ecommerce giant Coupang at the start of February through a pre-pack administration deal.

The sale included a £394.7m bridge loan to help the ecommerce player avoid bankruptcy while the deal was finalised. The luxury etailer was able to explore other potential suitors for all or part of the business while details of the transaction were agreed.

Warnings signs flashed when the New York-listed company cancelled its quarterly earnings report in December and said it “expects to provide a market update in due course”.

It then began discussions with several parties, including Apollo and shareholder Richemont, about securing new financing.

Since its sale to Coupang, Farfetch founder José Neves has stepped down from the business and between 25% and 30% of its workforce is said to have been made redundant as the new owner works to “streamline the business”.

The Body Shop

The Body Shop emerged from administration at the start of September under new owner Aurea, a consortium led by the British cosmetics tycoon Mike Jatania.

The vegan beauty chain, which had more than 200 stores nationwide, collapsed in February just weeks after private equity giant Aurelius acquired the chain from Brazillian beauty group Natura & Co.

Administrators at FRP put the retailer up for sale after it concluded that an alternative restructuring under Aurelius, which continued to fund the business through the process, was not viable.

FRP had explored a company voluntary arrangement (CVA) for The Body Shop following a shop closure and redundancy programme.

New owner Aurea relocated the retailer, which is being spearheaded by Molton Brown CEO Charles Denton, back to Brighton in what it said marks a “significant cultural reset” for the business.

Lloyds Pharmacy

Lloyds Pharmacy owner Aurelius placed the company into liquidation at the start of the year as it concluded its year-long divestment campaign.

The pharmacy – which was once the second biggest chain in the UK – had been quietly closing its stores and selling most of them to independent retailers and smaller chains during most of 2023.

The business shuttered all its 237 branches inside Sainsbury’s supermarkets in June 2023 in a move that is thought to have cost around 2,000 jobs.

LloydsPharmacy, which blamed a cut in government funding for its widening losses and store rationalistion programme, now operates as an online doctor service, clinical homecare and for patients in NHS hospitals, prisons, community health trusts and the private sector.

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As part of this restructure, the sofa giant’s DFS chief executive Nick Smith will step into the newly-created role of group chief customer and commercial officer, as he takes over leadership of Sofology alongside his existing responsibilities.

He will be supported by Arron Burton, who becomes group commercial director, James Brewer, new group marketing director, and Graham Mould, who will become group customer operations director.

DFS said these roles will join the already established group leaders of HR, IT, finance and distribution teams “to bolster a vastly experienced group operations leadership team”.

The reshuffle means that Dinnis, who joined the business in January 2022, will step down at the end of this month, along with Sofology’s director of customer operations Adam Smith and brand director Jan Duckworth.

The transition to the new leadership structure will complete taking on 1st January, 2025.

DFS group chief executive Tim Stacey said: “By bringing DFS and Sofology together under one management team we will create a more simplified structure, enabling us to focus on our strategic priorities, fully unlock group efficiencies, and create a stronger business for the future.

“I would like to thank Emma, Adam and Jan for their important contribution to making Sofology what it is today, and wish them all the best for the future.”

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MS Galleon’s managing director Piotr Lipko wrote to the tile specialist’s chair Paul Forman last week claiming “complete failure” among management to adapt to the changing retail landscape, The Times reported.

The shareholder, which holds a 29.9% stake, slammed Topps’ acquisition of CTD Tiles as “unequivocally irrational” and “highly detrimental” to the interests of the company.

MS Galleon claimed the retailer overpaid for the deal and failed to conduct sufficient due diligence.

Topps Tiles said it had conducted “appropriate” due diligence and that CTD would significantly accelerate its growth.

The retailer’s chair Forman said in a statement on Monday (2 December): “We engage with all our larger shareholders on a regular basis and listen closely to their views. Our strategy was reviewed in April and presented to shareholders in May, with further updates given last week.

“Further expansion of our digital capabilities is at the heart of many of these growth initiatives. Our latest results show that we continue to take market share, consistently outperforming the wider tile market despite very challenging trading conditions.

“We believe this demonstrates the effectiveness of our strategy, which has the full support of the board.”

It is not the first time that MS Galleon has demanded changes to the retailer’s senior management team, after seeking to oust its former chair Darren Shapland in 2022. Shapland survived the vote but stepped down the following year.

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The deadline for offers is today (29 November), Sky News reports that Kingfisher and M&S are to submit offers for ‘between 20 and 25 sites’, meaning that hundreds of jobs could be saved.

The outlet said it is unclear if this is the combined figure or the number of stores each retailer is considering.

Discount giant Home Bargains is also understood to have expressed an interest in a small number of stores.

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CDS (Superstores) International, the owner for The Range and Wilko, snapped up the Homebase brand, IP and up to 70 stores earlier this month, leaving around 50 stores and 2,000 jobs at risk.

Hilco Capital, which bought Homebase for £1 back in 2018, drafted in Teneo this year to explore multiple cost-saving options after the retailer reported an £84m loss in the year to January 2023, from a profit of £30m the year prior.

Sales also plummeted from £788m to £701m during the period.

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