The Crewe based home do-it-yourself store Focus DIY has gone into administration. Focus DIY has 180 stores across the UK. Administrators Ernst & Young are currently seeking a buyer for the failed chain.
4000 Employees In The Dark
Focus DIY’s 4000 employees do not know where their future lies at the moment and many fear job losses. Unless another large DIY chain, such as B&Q, purchase Focus, it is likely most will lose their jobs.
Annoucement on FocusDiy.co.uk
“Following notification of an event of default under the senior credit facility, and a realisation that there were no alternatives that could be explored any further, Focus Directors have come to the conclusion that to protect the interests of creditors they have no choice but to seek protection through filing a notice of intention to appoint administrators. The Directors have sought consent from the business’s lenders to appoint E&Y as the administrators. All stakeholders including staff are being informed”
Restructure and Cost Reduction Failed
Focus DIY have not been sitting idle in the past few years. In an attempt to reduce costs they have restructured operations and gain a tighter grip on the ever increasing costs, but unfortunately this just was not enough.
Focus and Payless Companies All in Admininstration
Also under that Focus DIY umbrella are:
- Focus (DIY) Limited
- Focus (Investments) Limited
- Payless DIY Limited
- Payless Properties Limited
- Do It All Limited
- Do It All (Holdings) Limited
Focus is owned by Cerberus, a private equity firm. They paid £1 for it in 2007 when it had debts of £174 million.
Read about the Focus DIY sale in 2007: Focus DIY sold for £1 – Guardian.co.uk