Home improvements chain Focus DIY is set to appoint administrators, which could have potential ramifications for DIYers in the area.
News agency Reuters has reported that the 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.
This could have ramifications for local people who rely on Focus DIY in Skegness or Louth for their DIY needs if the administrators choose to close the store.
However, this could benefit local stores and businesses such as EJ Tong and Jacksons with more people choosing to shop locally rather than travelling the extra distance to Boston.