Two south Essex Homebase stores are at risk of closure after the DIY giant collapsed into administration.

The retailer announced it would be bringing administrators in on November 13, leaving the futures of the Homebase branches on Stadium Way in Rayleigh, and London Road in Basildon in doubt.

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

Administrators appointed - A notice could be found on the Homebase store in RayleighAdministrators appointed - A notice could be found on the Homebase store in Rayleigh (Image: Newsquest)

Gavin Park, Gavin Maher, and Adele Macleod of Teneo Restructuring Limited have been appointed as the joint administrators of HHGL Limited and Hampden Group Limited.

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

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.

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