Bank appoints advisor at DIY chain Focus

LLOYDS Banking Group has appointed Ernst & Young to carry out an review of DIY stores chain Focus, according to the Independent newspaper.

It emerged at the weekend that Crewe-based Focus’s owner, US private equity furm Cerberus, had appointed investment bank Lazard to carry out its own review of the company, which has 180 stores.

Cerberus bought the business, which is carrying debts of around £230m for £1 three years ago.

Since then, it has been through a restructuring which saw it offload 38 non-trading stores via a Company Voluntary Arrangement last year. In the year to February 28, Focus (DIY) Ltd declared a pre-tax loss of £11.7m on sales of £365.2m.

The company has been undertaking a transformation programme, known as Genesis, in a bid to differentiate itself from competitors. This has involved the creation of smaller convenience-style stores in major urban centres.

Earlier this year, chief executive Bill Grimsey said that the new format stores were producing sales growth rates which were 30% higher than those being achieved in its traditional stores.