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05 May 2011
ERNST & YOUNG administrators have been called to collapsed retailer Focus DIY.
Simon Allport, Tom Jack and Alan Hudson were today appointed joint administrators and will continue to trade the business.
Further reading
The retailer avoided administration in 2009 when BDO insolvency practitioners achieved a Company Voluntary Arrangement to restructure and repay a percentage of debts over a contracted period of time.
However, with the latest announcement, the futures of 3,920 staff and 175 stores are in jeopardy.
Allport said: "Low consumer confidence and a very weak housing transaction market has impacted on Focus and placed considerable pressure on sales and margins.
"Despite management's actions to tightly control costs and restructure the operations, unfortunately it has not been possible for the business to continue to trade outside of insolvency."
Focus DIY was founded in 1987 and has annual sales of about £450m.
A statement from the business yesterday said: "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."
Focus DIY was likely to default on its credit facility and said it had "no alternatives that could be explored any further" than to enter administration.
For more company news visit Share Price Centre.
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Visitor comments Add your comment
Did the first CVA cut deep enough?
KSA Group - "Of course not all CVAs are going to work but it does beg the question as to whether the first CVA cut deep enough? However it does underline that many retailers are under pressure at the moment"
Posted by: Robert Moore, 05 May 2011 | 12:47