Staff at Homebase in Abingdon say they are "gutted" as their store looks set to close.

A giant 23,800 sq ft Homebase opened at Fairacres retail park in a new unit alongside Lidl and Costa Coffee.

But the future of the DIY store in the town now looks in doubt after the company went into administration.

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Shoppers at the weekend saw yellow administration and sale signs outside and throughout the store.

Homebase has been sold to retail group CDS in a rescue deal securing up to 1,600 jobs and 70 stores but it leaves the future of its remaining 2,000 workers and 49 shops unclear.

A member of staff at the Abingdon store said: "As far as we know the Homebase in Cowley has been rescued but we haven't - it looks like this one is going to close.

(Image: Andy Ffrench) "There are 18 staff who work here and we're all gutted. 

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"This Homebase only opened in 2021 - it's a brand new store so it doesn't make sense to close it."

The staff member said the store could close in six weeks' time, or 12 weeks, depending on the sale of existing stock.

She added: "We don't know whether we will still be here much after Christmas - it looks like we will need to find something new in 2025."

Homebase in Abingdon faces competition from the B&Q store opposite.

Homebase appointed administrators at consultancy Teneo on Wednesday before CDS, which owns The Range homeware outlets, bought the majority of its stores out of administration.

Teneo said the remaining 49 UK stores will continue to trade as normal while administrators try to find a buyer.

(Image: Andy Ffrench) CDS, which is owned by retail magnate Chris Dawson, bought the 40-year-old Homebase brand.

Damian McGloughlin, chief executive of Homebase, said the last three years had been “incredibly challenging” for DIY stores, blaming “a decline in consumer confidence and spending” after the pandemic.

“Against this backdrop, we have taken many and wide-ranging actions to improve trading performance including restructuring the business and seeking fresh investment," he added.

“These efforts have not been successful and today we have made the difficult decision to appoint administrators.”

(Image: Oxford Mail) Homebase was bought for £1 by investment firm Hilco Capital in 2018, which introduced a swathe of cost-cutting measures in the subsequent years.

But the retail chain struggled as customers cut back on spending amid the cost-of-living crisis, and reported an £84.2 million loss last year.

In August, Sainsbury’s struck a deal to buy 10 Homebase stores and convert them into supermarkets.

The jobs still at risk include workers at Homebase’s head office in Milton Keynes, as well as the remaining stores.

In 2021, when the giant new unit for Homebase, Lidl, Costa Coffee and other companies opened, Richard May, director of the real estate company Mays Properties Ltd, owning the retail park, said it was a "significant vote of confidence" for Abingdon.

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About the author 

Andy is the Trade and Tourism reporter for the Oxford Mail and you can sign up to his newsletters for free here. 

He joined the team more than 20 years ago and he covers community news across Oxfordshire.

His Trade and Tourism newsletter is released every Saturday morning. 

You can also read his weekly Traffic and Transport newsletter.