DAILY NEWS: Focus DIY to shed 3,000 jobs as stores close

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Focus had 178 shops and employed 3,920 people when it collapsed but E&Y managed to sell 55 stores to B&Q owner Kingfisher

Up to 3,000 jobs are to be lost at Focus DIY as the administrators announced the closure of its remaining 120 stores, crushing hopes that a buyer could be found.

The loss-making DIY chain, owned by US privatey equity firm Cerberus, collapsed into administration three weeks ago, burdened by debts of around £230m. Administrators at Ernst & Young are appointing Gordon Brothers, a specialist retail agent, to liquidate stock and shut the remaining shops.

Focus had 178 shops and employed 3,920 people when it collapsed but E&Y managed to sell 55 stores to B&Q owner Kingfisher, rival DIY chain Wickes, owned by Travis Perkins, and discount chain B&M Retail, saving some 900 jobs. A mooted management buyout led by former Focus chairman Bill Grimsey has not materialised.

An E&Y spokeswoman said the administrators would continue to try to sell the remaining stores, but closing down sales are set to start on Wednesday.

Focus has blamed the recession and the housing slump for its troubles, but analysts say it has always been squeezed by the two bigger DIY chains, B&Q and Homebase, and never managed to carve out a niche for itself.

Julia Kollewe

guardian.co.uk © Guardian News & Media Limited 2011 | Use of this content is subject to our Terms & Conditions | More Feeds

Ben Quinn 25 May, 2011

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Source: http://www.guardian.co.uk/business/2011/may/25/focus-diy-3000-job-losses-stores-close
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