Focus DIY falls into administration

The UK DIY Chain Focus yesterday fell into administration. With debts of over €250m, Chairman Bill Grimsey said the business had defaulted on a loan and were preparing to bring in Ernst & Young. The closure of the business will put nearly 4,000 jobs at risk across their 178 stores and their Crewe based Head Office. In a statement issued yesterday Focus said "Following notification of an event of default under the senior credit facility, and a realization 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." Since 2007, Focus DIY has been majority owned by Cerberus, the US based private equity firm, who purchased them from Apax Partners, Duke Street Capital and chairman and the original founder Bill Archer for £1. Potential buyers were beginning to circle last night, including Chris Dawson, owner of The Range, a 50 store chain of DIY and Homewares who said he would be interested if the price was right. It is understood that the Focus stores will remain trading for the next 5 days, following which a decision will be made by Ernst & Young.