In what will to the public, be one of the most disastrous retail acquisitions ever in history, an Australian firm, Wesfarmers the owner of Homebase has sold the DIY chain for just £1.

It is understood that originally, the Australian company  chose to start  to strip out the soft furnishings a popular line with customers at Homebase and failed to understand the UK market  leading to losses that swiftly  mounted, coupled with deteriorating economic  climate in Britain and a downward spiral for the business entity.

According to Wesfarmers they underestimated British  winter demand for various items ranging from  heaters to cleaning and storage items, and  they went on to phase out  popular kitchen and bathroom ranges in the Homebase chain.

Westfarmers originally purchased Homebase two years ago for £340 million, but the DIY chain will go for a song, £1, and  its being bought by restructuring specialist Hilco.

Hilco is remembered  for rescuing music chain HMV in 2013. More news to follow. By Sibusiso Ngwenya