Sales at Homebase slumped 20 percent in the first quarter of 2018, with revenues affected by the “beast from the east”
Like-for-like sales for the Australian-owned DIY chain were down 15.4 percent compared to the same period last year.
Homebase blamed the cold snap in British weather, which affected consumers demand for plants and garden furniture.
Wesfarmers (ASX: WES) bought Homebase for £340 million in 2016.
The Perth-based group have converted 23 of the DIY chain’s 250 stores into the Australian brand, Bunnings. It is unclear whether the Wesfarmers will continue with the refurbishments, which are proving to be costly.
It is understood that Wesfarmers is offering £100 million to find a new buyer, in what was described as one of the most disastrous retail takeovers seen.
Wesfarmers said in February that it was carrying out a business review of the British DIY chain, which could lead to 2,000 job losses and 40 store closures across Britain and Ireland.
Private equity firms including Hilco, Endless and Lion Capital are weighing a potential bid.
Michael Schneider, the Bunnings group managing director, said that “satisfactory progress” had been made on work to increase the performance of Homebase stores in the UK.
Homebase announced in early 2018 that half-year pre-tax losses had fallen to £97 million, compared to a £28 million loss the previous year.
The group has 250 stores and employs 12,000 people in the UK.