The DIY retailer is reportedly lining up insolvency practitioners at the Teneo consultancy, which could see it placed into administration.
Retail magnate Chris Dawson, who owns The Range homeware outlets, was reportedly planning a last-minute rescue deal and it has now been confirmed.
Up to 1600 jobs and 70 stores are set to be saved, administrator Teneo has said, but around 2000 workers and 49 shops still remain at risk.
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Homebase was bought for £1 by investment firm Hilco Capital, which has since brought in a swathe of cost-cutting measures.
But the retail chain has 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.
Homebase declined to comment, while Teneo and The Range have been contacted for comment.
It comes after a hunt for a buyer from Homebase’s current owners which is thought to have lasted for the last two months.
Dawson is also in talks to buy Homebase’s 40-year-old brand and its website, in a deal which could cost about £30m.
The businessman, whose CDS Superstores acts as parent company to The Range, bought parts of high street retailer Wilko after it collapsed last year.
He told The Telegraph newspaper: “We are delighted to be able to save so many stores and jobs, and look forward to adding the Homebase brand and subsidiaries to the expanding Range group of companies.”
The Range sells homeware and DIY products from its more than 200 store estate in the UK.
