Focus DIY to shed 3,000 jobs as stores close

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 in tranches 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. Retail industry Job losses Julia Kollewe guardian.co.uk

Posted by on May 25, 2011. Filed under News, Politics, World News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.