Administrator confident more Focus stores will be sold
THE administrator of ailing DIY chain Focus is confident of selling a “significant number” of stores before the business closes down.
Simon Allport, senior partner of Ernst & Young in the North West and joint administrator of the Crewe-based company believes forecasts that 3,000 jobs are on the line is a “worst case outcome”.
He told TheBusinessDesk.com: “There will be further deals done – my colleague and joint administrator Tom Jack is looking at several things.”
So far three buyers – Kingfisher, Travis Perkins and B&M Bargains have bought 55 of Focus 175 stores, safeguarding around 900 jobs.
Mr Allport said these store sales, and a lack of available finance had scuppered plans for a management buyout led by chief executive Bill Grimsey.
“I think they would have wanted many of the the stores we have sold. We explored the MBO, but we’ve reached the end of the road as far as selling Focus as a going concern.
“It’s now about realising what we can for creditors, either selling properties or stock.”
Closing down sales have begun at the stores, and are expected to continue until the end of next month before closing for the last time.
Mr Allport said that on the first day of the administration Ernst & Young had more than 200 people working on the case.
“Our first job was to visit all the stores and speak to the staff to let them know what was happening. We have around 15 people still on the case now.”
He is expecting more retail casualties, possibly as early as the next quarterly rent day next month. “I think the environment for retailers is as tough as anyone can remember, and it’s a case of the survival of the strongest.”
