Jobs fear as Focus DIY closes 120 stores
25 May 2011 09:51
Crewe-based DIY chain Focus is to close 120 stores putting thousands of jobs at risk, sources said.
The private equity-owned firm, which ran 175 stores and employed 3,920 staff, fell into administration earlier this month.
More than 50 of the stores have been sold off but the remaining Focus shops will shut and the stock will be liquidated, sources close to the administrators said.
It is understood that three buyers have acquired dozens of stores each. The owner of B&Q bought 31 stores from the stricken chain for £23 million.
Kingfisher, which also owns the Screw Fix brand, said it plans to refit the vacant properties and open them as new B&Q stores later in the year.
Ernst & Young, which was appointed as the administrator to the stricken store, is expected to announce the closures on Wednesday.
A source said that the firm is expected to appoint Gordon Brothers, a specialist retail agent, to carry out the task. Ernst & Young declined to comment.
Private equity firm Cerberus bought Focus in 2007, reportedly paying just £1. Focus was heavily indebted at the time and Cerberus said it would pay off the firm's £174 million of debts.
It appointed Bill Grimsey, the former boss of the Big Food Group, which owned the Iceland frozen food chain, as chief executive in charge of a new management team.
It is understood that Cerberus invested some £200 million in trying to turn the company around.
The chain has also struggled in recent years against tough competition from B&Q and Wickes. The DIY market has suffered amid falling consumer confidence and depressed house prices.
The Crewe-based company was founded by Bill Archer and a business partner in 1987, with six stores in the Midlands and the North of England.
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