HOMEBASE has been saved from collapse by a rival company with more than half its locations bought.

CDS Superstores, the owner of The Range and Wilko, has completed a deal to buy 70 stores and the Homebase brand.

The DIY retailer appointed administrators Teneo on Wednesday (November 13) before it was bought out by CDS.

However, 49 stores, the company's head office in Milton Keynes and the jobs of 2,000 workers are still at threat as Teneo looks to find another buyer for the remain.

Administrators have not disclosed the locations of the stores which are still on sale, leaving the branch in Elgar Retail Park, Worcester still in doubt.

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."

Homebase was bought by Hilco Capital for just £1 in 2018 and have tried to salvage the business through a series of cost-cutting measures, but reported a loss of £84.2 million last year.

10 stores were purchased by Sainsbury's in August, including the Brook Retail Park location in Bromsgrove.