Marks & Spencer (M&S) and Kingfisher are preparing to submit offers for up to 25 Homebase stores, potentially saving hundreds of jobs as the DIY retailer navigates administration.

The retailers are among several interested parties vying for the remaining 50 Homebase outlets before a Friday deadline. Property industry sources indicate that Home Bargains, the privately owned homewares retailer, is also considering acquiring a small number of sites.

Earlier this month, CDS (Superstores) International, owner of The Range, acquired approximately 70 stores, the brand, and e-commerce operations in a pre-pack deal. The Range, founded by Chris Dawson, has already absorbed around 1.6 million Homebase employees.

Approximately 2 million jobs remain at risk following the retailer's collapse. Administrators have been working intensively to rescue as many positions as possible during the past fortnight.

The potential acquisition comes during a challenging period for retailers, with escalating cost pressures following recent budgetary developments. Kingfisher and M&S have both recently warned about economic challenges facing the sector.

Hilco Capital, which originally purchased Homebase for £1 in 2018, initiated Teneo to explore cost-saving strategies after the company reported significant financial challenges. The retailer recorded an £84 million loss in the year to January 2023, compared to a £30 million profit in the previous year, with sales declining from £788 million to £701 million.

Neither M&S nor Kingfisher have provided official comments on their potential store acquisitions.

The ongoing sale process remains fluid, with multiple parties expressing interest in salvaging parts of the struggling DIY chain's remaining infrastructure.

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