Homebase has entered administration with debts exceeding £650 million, primarily affecting unsecured creditors. This includes significant amounts owed to various suppliers and a large intra-group debt of £524 million. The failure to secure additional financing following Wells Fargo's withdrawal of a lending facility led directors to pursue administration. The appointed administrator, Teneo, is exploring the implications of this debt on the potential recovery for creditors. Following administration, 70 Homebase stores and associated assets were sold in a pre-pack deal.
The huge level of debt Homebase accrued over the years is an all too familiar story, with various creditors left out of pocket—and no hope of recovering monies owed.
Teneo is seeking legal advice on the security status of the intra-group debt, which may yet alter the outcome for creditors.
Collection
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