Fears for retail as Focus eyes administration

Published 04th May 2011

Home improvements chain Focus DIY is set to appoint administrators, putting nearly 4,000 jobs at risk and adding to fears of a fresh wave of retail failures amid sluggish consumer spending and rising costs.

Focus DIY, majority-owned by private equity firm Cerberus, said on Wednesday it was seeking consent from its lenders to appoint E&Y as administrators.

"Following notification of an event of default under the senior credit facility, and a realisation 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," it said.

Focus DIY, which competes with larger rivals B&Q and Homebase, employs 3,919 people at 178 stores.

Source: ' Reuters '

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