Focus DIY to close 120 stores

The administrators of Focus DIY, the private equity-backed retailer, announced the closure of more than 120 stores on Tuesday with the loss of up to 3,000 jobs, dashing hopes that a buyer for the chain would be found.

Ernst & Young, which was appointed as administrator to Focus earlier this month, has appointed retail consultant Gordon Brothers “to advise on the sale of all stock of the Focus DIY stores with a view to closing down the retail chain”. Closing down sales will begin this weekend.

“UK retailers are facing one of the most challenging retail environments in recent times, and the DIY sector has become highly competitive, with only the strongest players being able to thrive and survive,” said Simon Allport, joint administrator at E&Y.

“We have been working hard to sell the business as a going concern and to maximise value for creditors. While we have been successful in securing up to 900 jobs from the sale of 55 stores in three separate deals, finding a buyer for the whole of the business has not been possible.”

Focus’s former owner, US investment firm Cerberus Capital Management, blamed the consumer slowdown and a weak housing market for the chain’s downfall, but the failure of the business is a blow to the private equity industry’s claim of being able to turn round struggling companies.

E&Y has successfully sold tranches of Focus stores to B&Q owner Kingfisher, DIY chain Wickes and discount chain B&M Retail in recent weeks, saving about 900 jobs.

This process is understood to be continuing, but attempts to find a buyer for the chain have proved fruitless, and a rumoured management buy-out led by Bill Grimsey, former Focus chairman, has failed to materialise.

Focus stores have continued to trade throughout the administration, and E&Y has reported record trading as customers snap up bargains.