The Range, the privately owned general merchandise retailer, is closing in on a deal to snap up a large chunk of Homebase which will save close to 1,500 jobs but raise doubts about at least 1,700 more.
Sky News has learnt that administrators are being lined up to handle a pre-pack sale of scores of Homebase stores amid hopes that a significant number of the company’s remaining jobs can be salvaged.
The deal with The Range, which is expected to take place on Wednesday, will involve the purchase of up to 75 stores, including Homebase’s Irish shops.
The Range is also taking over Homebase’s brand and ecommerce business, and will take on around 1,600 of the DIY chain’s employees.
Teneo, which has been running a sale process in recent months, is expected to seek buyers for nearly 50 remaining Homebase stores once it is appointed as administrator.
Interest is already said to have been registered by discount food retailers, DIY rivals and other high street brands, according to insiders.
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The sale will bring an end to the six-year ownership of Homebase by Hilco, the retail investor which previously rescued brands including HMV, where it has led an unexpectedly successful revival of a business which looked set to disappear from Britain’s retail landscape.
Homebase was previously owned by Australian group Wesfarmers during which time it lost hundreds of millions of pounds and threatened to collapse altogether.
In recent years attempts to reinvigorate Homebase’s brand and operations have been hampered by the disruption of the COVID-19 pandemic and a decline in consumer spending on major home improvement projects during the cost-of-living crisis.
The DIY chain has had a nomadic existence, being owned at one point by J Sainsbury – which recently bought a dozen Homebase shops – and then coming under common ownership with Argos as part of Home Retail Group.
It was then sold to Wesfarmers, which in 2018 initiated a company voluntary arrangement, resulting in the closure of a substantial number of stores and renegotiated rent deals.
Homebase lost more than £40m in 2022, according to accounts filed at Companies House, although last year’s performance is understood to have shown an improvement.
As well as its operations in the UK, Homebase has a presence in Ireland.
Based in Devon, The Range is part of CDS Superstores, which is controlled by the businessman Chris Dawson.
Last year, it paid £7m to buy the brand and intellectual property assets of Wilko, which had collapsed into administration.
Since then, Mr Dawson has opened a string of new Wilko outlets.
The Range trades from more than 200 outlets across Britain selling homewares, furniture and DIY products.
Mr Dawson opened its first store in Plymouth in 1989.
Nicknamed “the Del Boy billionaire” because of the distinctive number-plate on his Rolls-Royce Wraith, he has become one of Britain’s most successful retail entrepreneurs.
Hilco, Homebase and Teneo have been contacted for comment, while The Range could not be reached for comment.
Many months before farmers found themselves on the front pages of newspapers, after protesting in Whitehall against the new government’s inheritance tax rules, we at Sky News embarked upon a project.
Most of our reports are relatively short affairs, recorded and edited for the evening news. We capture snapshots of life in households, businesses and communities around the country. But this year we undertook to do something different: to spend a year covering the story of a family farm.
We had no inkling, at the time, that farming would become a front-page story. But even back in January, 2024 was shaping up to be a critical year for the sector. This, after all, was the year the new post-Brexit regime for farm payments would come into full force. Having depended on subsidies each year for simply farming a given acreage of land, farmers were now being asked to commit to different schemes focused less on food than on environmental goals.
This was also the first full year of the new trade deals with New Zealand and Australia. The upshot of these deals is that UK farmers are now competing with two of the world’s major food exporters, who can export more into Britain than they do currently.
You can watch the Sky News special report, The Last Straw, on Sky News at 9pm on Friday
On top of this, the winter that just passed was a particularly tough one, especially for arable farmers. Cold, wet and unpredictable – even more so than the usual British weather. It promised to be a challenging year for growing.
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With all of this in mind, we set out to document what a year like this actually felt like for a farm – in this case Lower Drayton Farm in Staffordshire. In some respects, this mixed farm is quite typical for parts of the UK – they rear livestock and grow wheat, as well as subcontracting some of their fields to potato and carrot growers.
A look at farming reimagined
But in other respects, the two generations of the Bower family here, Ray and Richard, are doing something unusual. Seeing the precipitous falls in income from growing food in recent years, they are trying to reimagine what farming in the 21st century might look like. And in their case, that means building a play centre for children and what might be classified as “agritourism” activities alongside them.
The upshot is that while much of their day-to-day work is still traditional farming, an increasing share of their income comes from non-food activity. It underlines a broader point: across the country, farmers are being asked to do unfamiliar things to make ends meet. Some, like the Bowers, are embracing that change; others are struggling to adapt. But with more wet years expected ahead and more changes due in government support, the coming years could be a continuing roller coaster for British farming.
With that in mind, I’d encourage you to watch our film of this year through the lens of this farm. It is, we hope, a fascinating, nuanced insight of life on the land.
You can watch the Sky News special report, The Last Straw, on Sky News at 9pm on Friday
The rugged mountains, limestone caves and spectacular waterfalls of Bannau Brycheiniog – the Brecon Beacons – attract visitors from all over the world.
Tourism is a vital part of the local economy. But local attractions say the industry would be devastated by the Welsh government’s plans for a nightly visitor tax.
“In an area like this all we’ve got is tourism and farming – there is nothing else,” says Ashford Price from the National Showcaves Centre, a visitor complex of cathedral sized caverns, winding tunnels, a dry ski slope, shire horse centre, self-catering accommodation and campsite.
“If they go on like this the future for Welsh tourism is really, really bleak. It will be an absolute catastrophe.”
The proposed fee would be £1.25 for those staying at hotels, bed and breakfasts and self-catering accommodation – and 75p for campsites, caravan sites, and hostels.
Ashford is secretary of the Welsh Association of Visitor Attractions. In protest against the plans, its more than one hundred members closed their attractions for a day.
“Even Welsh people who live in Wales will be clobbered by this tourism tax,” he said.
“It’s quite high, there’s no reduction for children. For a family that will add roughly £35, £40 a week. If you’re staying two weeks, as many people do, it’s £70 on top of your bill. At a time when everybody’s earnings are really struggling, it’s utter insanity to put Wales at such a disadvantage.
“There will be no more big developments. We already cancelled a development for £1.5m and I know other attractions are doing the same. I don’t think the Welsh government really understands how demoralised people feel.”
‘It’s a disaster’
In the nearby village, Anthony Christopher, landlord of the Penycae Inn, is deeply frustrated.
“I just feel like calling this government a bunch of weasels,” he said.
“We’re a small family business and all these extra taxes are taking away the will to do anything else.
“We have national insurance already – contributions are very high. VAT is very high. Now this tax is coming – it’s a disaster. We have to put this extra charge on the customers – how much more can we put on the customers? It’s terrible.”
Anthony has just converted an old school building into a 14-bedroom hotel – due to open in January.
“If I knew this was going to happen I may not have built my hotel. It’s very worrying.”
Many areas in Wales have struggled with the impact of tourism in recent years, with complaints about overflowing car parks, traffic jams, litter and even human faeces on Mount Snowdon.
The Welsh government argues giving councils the power to charge a tourism tax would help pay for better local services.
“During a period of sustained austerity of the sort we’ve seen over the last 14 years, local authorities inevitably end up focusing their spend on those things for which they’ve got statutory obligations – social care, education and so on,” said Finance Secretary Mark Drakeford.
“That has meant there’s been a reduction in the amount of money available for local authorities to invest in infrastructure that makes them successful places for tourists to visit. This is a way of collecting a very small contribution from every one of us who makes a visit to be reinvested in the conditions that make for that visit to be a success.
“It’s money that would be reinvested in the tourism industry, for example, clean beaches and safe footpaths and car parks and public toilets.”
‘People simply absorb it’
The tourism industry accounts for 11% of all jobs in Wales. But an impact assessment commissioned by the Welsh government predicted that in a worst case scenario, 730 jobs could be lost in the sector if a visitor tax was introduced across the country, with an economic cost of £47.5 million. It also predicted 340 local authority jobs would be created.
Mr Drakeford insists the tax will boost tourism – not damage it.
“For those who have fears that the very modest visitor levy will put visitors off, the experience of around the world is that simply isn’t the case. There is a great deal now of empirical evidence for many places that have introduced visitor levies of this sort, not just abroad, but in Manchester, for example,” he said.
“The evidence is not just from big places like Venice, but from rural France, where there’s a levy of this sort. People simply absorb it as part of the costs of their holiday.”
Tourism taxes in cities across Europe range from around 50p to £5 a night, although businesses generally benefit from lower rates of VAT than the 20% paid in the UK.
The idea is becoming increasingly popular across the UK.
While some regional mayors like Andy Burnham have been calling for equivalent powers to be introduced in England, the Westminster government has no plans to do so.
But local areas can work around this through businesses coming together to set up their own schemes. Manchester’s £1 a night charge raised £2.8m in its first year and hoteliers in Liverpool are about to vote on a similar idea.
Other cities, including York and London, are also considering the option – though a plan for Bournemouth, Christchurch and Poole has been put on hold after objections from hotel owners about the ballot held there.
An Oxford University spinout which is developing a new generation of weed-resistant herbicides has begun planting a $40m (£32m) fundraising with prospective backers.
Sky News understands that Moa Technology, which was co-founded by the world-leading university’s head of plant sciences Professor Liam Dolan, is kicking off a Series C funding round.
Moa has already raised $59m (£47m) from prominent investors including Oxford Science Enterprises (OSE), BGF and Lansdowne Partners, the Mayfair-based hedge fund.
Its existing shareholders are understood to be supportive of the new fundraising plans, although potential new investors will also be approached.
Moa is developing active ingredients which can break weeds’ resistance to herbicides – a key challenge for the global agricultural sector – with the aim of securing approval from regulators.
Similar to the growth of antibiotic resistance in humans, resistant ‘superweeds’ are able to kill a farmer’s entire crop, ultimately endangering food security.
Industry data suggests that farmers spend up to $40bn (£31.2bn) annually on herbicides, and a further $25bn (£19.9bn) on weed-resistant seeds.
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However, a number of leading weedkillers, including Bayer-owned Roundup, have sparked multibillion dollar lawsuits over their alleged implications for human health.
Moa has developed more than 70 so-called ‘modes of action’, with several of the company’s products in advanced field trials in six countries, including the UK, US and France.
According to Moa, these could, assuming they gain regulatory approval, be commercially available by the end of the decade.
The OSE-backed spinout has a commercial agreement with Nufarm, an Australian agrichemicals company, to further develop one of its products.
A Moa spokesman said it intended to operate a royalties model similar to that of ARM Holdings, the chip designer, in semiconductors, meaning it will focus on research and development, and license its products to global manufacturers and distributors.
The company is run by chief executive Dr Virginia Corless, who has had extensive experience commercialising sustainable solutions in the energy, water and agriculture sectors.
An update on Moa’s fundraising progress is likely in the first half of next year.