Administrator seeks buyer for Focus DIY

CREWE-based retail chain Focus DIY has been put up for sale by administrators Ernst & Young.

The company, which has 175 stores across the country and employs 3,920 people, has been struggling for some time, only avoiding administration in 2009 when it went through a CVA process.

Manchester-based insolvency experts Simon Allport and Tom Jack, were appointed today. 

Focus, which was founded in 1987 made a loss of £21m on sales of nearly £490m in the year to February 21, 2010. According to accounts filed at Companies House, it has bank loans and overdrafts amounting to some £230m.

Mr Allport said Focus had been a victim of low consumer confidence and “a very weak housing transaction market”, which had put sales and margins under pressure.

“Despite management’s actions to tightly control costs and restructure the operations, unfortunately it has not been possible for the business to continue to trade outside of insolvency.”

The Joint Administrators are seeking offers for the sale of the business as a going concern.

Mr Allport added: “Focus will continue to trade as we look for a buyer for the group and its stores. It is very much business as usual and we are grateful to all the group’s loyal customers, suppliers and employees for their continued support.” 

Focus is one of the biggest retail failures since the demise of Woolworths in late 2008.