Focus (DIY)
Encyclopedia
Focus DIY was a privately owned chain of DIY stores in the UK
. It served the consumer DIY market sector, and most stores had some form of garden centre.
By 2011, it was the fourth largest DIY retailer in the UK, although at its peak, it had been the second largest DIY retailer in the UK. Its main competitors were B&Q
, Homebase
and Wickes
.
The company operated 178 stores in the UK with 3000 employees, but had been running losses every year since 2007. The year up to 2011, the company saw a loss of £25m
On 4 May 2011 the Focus Group announced that it was going to enter administration
; the following group companies are to go into administration; Focus (DIY) Limited, Focus (Investments) Limited, Payless DIY Limited, Payless Properties Limited, Do It All Limited and Do It All (Holdings) Limited.
The company entered administration on 5 May 2011 with Ernst & Young
appointed as administrators. As no buyer was found for the chain as a whole, the company was put into a wind down process. During this period the administrators were able to sell 55 stores to B&Q
, Wickes
and B&M Bargains. The remaining 123 stores were closed,
closing in intervals, which began June 19. The final stores were closed on July 22 2011.
DIY chain from Boots in 1998. Both chains were rebranded as "Focus Do It All".
The company added a further 131 stores with the purchase of Wickes
in 1999, a 'no frills' DIY chain which focused on building supplies to the trade, while the existing Focus company had targeted the light end of the market. The two store format was thought to compliment each other and so were retained as separate entities. The group became known as "Focus Wickes".
In 2000, the group expanded again with the purchase of the Great Mills
chain from RMC Group. Another 98 stores were added to the portfolio. The majority of these stores were re-branded as Focus, except for some larger stores which became Wickes. By 2002, through rapid expansion and acquisition, Focus had become the second biggest DIY chain in Britain with 430 stores and sales of over £1.66 billion.
In 2005, the Wickes business and stores were sold to Travis Perkins
for £950m, making a tidy return on the £350m initial investment.
By January 2007, it was clear that the company had run into financial difficulties; it was close to breaching its banking covenants and struggling under debts built up over the acquisition spree in the preceding years. The DIY market as a whole had experienced a two-year drop in sales and Focus blamed "challenging" market conditions for the difficulties. Focus appointed bankers Rothschild to advise it on a potential sale of the business. The final store to cease trading was in Gillingham Dorset on 22 July 2011.
, formerly CEO of Wickes, as CEO.
In an attempt to tackle the financial problems the owners restructured the business, and injected fresh capital in the form of £200m via loans by the owners Cerberus Capital , Bank of Scotland
and GMAC. Costs were slashed and under-performing stores were either closed or sold to other retails including Homebase
, Wickes
and Sainsbury's. In 2009 a programme of new store formats and further cost cutting was undertaken.
By early 2011, the number of stores had gradually been reduced from 256 in 2007 to 178.
. The Tamworth centre was acquired with the Do It All business in 1998. The closure of the Severnside distribution centre was announced in October 2008, citing adverse financial circumstances.
placed Simon Allport, Alan Hudson and Tom Jack as joint administrators at midnight.
On 6 May 2011, it was announced that B&Q
had bought 31 stores in cash for £23m with a plan to refit the properties and open them as B&Q
stores in July, with Focus employees transferring to the stores.
In May 2011 Wickes
and B&M Bargains purchased some stores, with interest from The Range
and Morrisons
.
Ernst & Young
have announced the closure of the remaining 120 stores which will result in up to 3,000 job losses.
At the time of the appointment of the Administrators, the 178-strong retail chain collapsed owing businesses, shareholders and funders around £1Bn. The sale of assets has so far generated £70M leaving most creditors including the Inland Revenue out of pocket.
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
. It served the consumer DIY market sector, and most stores had some form of garden centre.
By 2011, it was the fourth largest DIY retailer in the UK, although at its peak, it had been the second largest DIY retailer in the UK. Its main competitors were B&Q
B&Q
B&Q plc is a multinational DIY and home improvement retailer headquartered in Eastleigh, United Kingdom. It was founded in 1969 and is a wholly owned subsidiary of Kingfisher plc, which is listed on the London Stock Exchange....
, Homebase
Homebase
Homebase is a British home improvement store and garden centre, with 350 stores across the United Kingdom and the Republic of Ireland. It is well known by its green and orange colour scheme. Together with its sister company Argos , it forms part of Home Retail Group. Homebase recorded sales figures...
and Wickes
Wickes
Wickes is a do-it-yourself retailer based in the United Kingdom and owned by Travis Perkins, with more than 190 stores throughout the country. It focuses on supplies and materials for homeowners and the building trade...
.
The company operated 178 stores in the UK with 3000 employees, but had been running losses every year since 2007. The year up to 2011, the company saw a loss of £25m
On 4 May 2011 the Focus Group announced that it was going to enter administration
Administration (insolvency)
As a legal concept, administration is a procedure under the insolvency laws of a number of common law jurisdictions. It functions as a rescue mechanism for insolvent entities and allows them to carry on running their business. The process – an alternative to liquidation – is often known as going...
; the following group companies are to go into administration; Focus (DIY) Limited, Focus (Investments) Limited, Payless DIY Limited, Payless Properties Limited, Do It All Limited and Do It All (Holdings) Limited.
The company entered administration on 5 May 2011 with Ernst & Young
Ernst & Young
Ernst & Young is one of the largest professional services networks in the world and one of the "Big Four" accountancy firms, along with Deloitte, KPMG and PricewaterhouseCoopers ....
appointed as administrators. As no buyer was found for the chain as a whole, the company was put into a wind down process. During this period the administrators were able to sell 55 stores to B&Q
B&Q
B&Q plc is a multinational DIY and home improvement retailer headquartered in Eastleigh, United Kingdom. It was founded in 1969 and is a wholly owned subsidiary of Kingfisher plc, which is listed on the London Stock Exchange....
, Wickes
Wickes
Wickes is a do-it-yourself retailer based in the United Kingdom and owned by Travis Perkins, with more than 190 stores throughout the country. It focuses on supplies and materials for homeowners and the building trade...
and B&M Bargains. The remaining 123 stores were closed,
closing in intervals, which began June 19. The final stores were closed on July 22 2011.
History
The company had its origins in the early 1980s when Mike Williams launched Focus Homecentres for AAH Holdings plc. In 1987 Focus Homecentres was acquired by Choice Group Limited. The new company's shareholders included Mike Williams, Bill Archer and Greg Stanley (who had previously built up and sold the DIY chain Fads) Focus increased its market share with a mix of both acquisitions and organic growth including the purchase of the Do It AllDo It All
- History :Do It All was originally created by WH Smith in 1979 when the company acquired a DIY chain.Fierce competition in the 1980s saw the chain struggle, and in 1990 it was merged with the rival Payless DIY chain, owned by the Boots Group. The combined group - in which WH Smith and Boots both...
DIY chain from Boots in 1998. Both chains were rebranded as "Focus Do It All".
The company added a further 131 stores with the purchase of Wickes
Wickes
Wickes is a do-it-yourself retailer based in the United Kingdom and owned by Travis Perkins, with more than 190 stores throughout the country. It focuses on supplies and materials for homeowners and the building trade...
in 1999, a 'no frills' DIY chain which focused on building supplies to the trade, while the existing Focus company had targeted the light end of the market. The two store format was thought to compliment each other and so were retained as separate entities. The group became known as "Focus Wickes".
In 2000, the group expanded again with the purchase of the Great Mills
Great Mills (DIY)
Great Mills was a large DIY chain consisting of around 98 stores across the United Kingdom. In December 2000, the chain was bought by Focus, a large DIY chain based in Crewe.- History :...
chain from RMC Group. Another 98 stores were added to the portfolio. The majority of these stores were re-branded as Focus, except for some larger stores which became Wickes. By 2002, through rapid expansion and acquisition, Focus had become the second biggest DIY chain in Britain with 430 stores and sales of over £1.66 billion.
In 2005, the Wickes business and stores were sold to Travis Perkins
Travis Perkins
Travis Perkins plc is a British builders merchant based in Northampton. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.-History:...
for £950m, making a tidy return on the £350m initial investment.
By January 2007, it was clear that the company had run into financial difficulties; it was close to breaching its banking covenants and struggling under debts built up over the acquisition spree in the preceding years. The DIY market as a whole had experienced a two-year drop in sales and Focus blamed "challenging" market conditions for the difficulties. Focus appointed bankers Rothschild to advise it on a potential sale of the business. The final store to cease trading was in Gillingham Dorset on 22 July 2011.
The new Focus
Cerberus Capital purchased Focus DIY for £1 in June 2007 and appointed Bill GrimseyBill Grimsey
Bill Grimsey is a businessman living in Radlett in the United Kingdom who has specialised in the food and DIY sectors, most notably at Wickes, Iceland, and Focus .-Early career:Grimsey left school at 15 to became a butcher's boy...
, formerly CEO of Wickes, as CEO.
In an attempt to tackle the financial problems the owners restructured the business, and injected fresh capital in the form of £200m via loans by the owners Cerberus Capital , Bank of Scotland
Lloyds Bank
Lloyds Bank Plc was a British retail bank which operated in England and Wales from 1765 until its merger into Lloyds TSB in 1995; it remains a registered company but is currently dormant. It expanded during the nineteenth and twentieth centuries and took over a number of smaller banking companies...
and GMAC. Costs were slashed and under-performing stores were either closed or sold to other retails including Homebase
Homebase
Homebase is a British home improvement store and garden centre, with 350 stores across the United Kingdom and the Republic of Ireland. It is well known by its green and orange colour scheme. Together with its sister company Argos , it forms part of Home Retail Group. Homebase recorded sales figures...
, Wickes
Wickes
Wickes is a do-it-yourself retailer based in the United Kingdom and owned by Travis Perkins, with more than 190 stores throughout the country. It focuses on supplies and materials for homeowners and the building trade...
and Sainsbury's. In 2009 a programme of new store formats and further cost cutting was undertaken.
By early 2011, the number of stores had gradually been reduced from 256 in 2007 to 178.
Supply chain
In November 2008 Focus had one main distribution centre, in TamworthTamworth
Tamworth is a town and local government district in Staffordshire, England, located north-east of Birmingham city centre and north-west of London. The town takes its name from the River Tame, which flows through the town, as does the River Anker...
. The Tamworth centre was acquired with the Do It All business in 1998. The closure of the Severnside distribution centre was announced in October 2008, citing adverse financial circumstances.
Administration
On 5 May 2011, it was announced that owners Cerberus Capital had placed Focus into administration after failed attempts to find a rescue deal. Ernst & YoungErnst & Young
Ernst & Young is one of the largest professional services networks in the world and one of the "Big Four" accountancy firms, along with Deloitte, KPMG and PricewaterhouseCoopers ....
placed Simon Allport, Alan Hudson and Tom Jack as joint administrators at midnight.
On 6 May 2011, it was announced that B&Q
B&Q
B&Q plc is a multinational DIY and home improvement retailer headquartered in Eastleigh, United Kingdom. It was founded in 1969 and is a wholly owned subsidiary of Kingfisher plc, which is listed on the London Stock Exchange....
had bought 31 stores in cash for £23m with a plan to refit the properties and open them as B&Q
B&Q
B&Q plc is a multinational DIY and home improvement retailer headquartered in Eastleigh, United Kingdom. It was founded in 1969 and is a wholly owned subsidiary of Kingfisher plc, which is listed on the London Stock Exchange....
stores in July, with Focus employees transferring to the stores.
In May 2011 Wickes
Wickes
Wickes is a do-it-yourself retailer based in the United Kingdom and owned by Travis Perkins, with more than 190 stores throughout the country. It focuses on supplies and materials for homeowners and the building trade...
and B&M Bargains purchased some stores, with interest from The Range
The Range Home and Leisure
The Range Home Garden and Leisure , is a British home retail chain for a range of home, garden and leisure items.- History :...
and Morrisons
Morrisons
Wm Morrison Supermarkets plc is the fourth largest chain of supermarkets in the United Kingdom, headquartered in Bradford, West Yorkshire, England. The company is usually referred to and is branded as Morrisons formerly Morrison's, and it is part of the FTSE 100 Index of companies...
.
Ernst & Young
Ernst & Young
Ernst & Young is one of the largest professional services networks in the world and one of the "Big Four" accountancy firms, along with Deloitte, KPMG and PricewaterhouseCoopers ....
have announced the closure of the remaining 120 stores which will result in up to 3,000 job losses.
At the time of the appointment of the Administrators, the 178-strong retail chain collapsed owing businesses, shareholders and funders around £1Bn. The sale of assets has so far generated £70M leaving most creditors including the Inland Revenue out of pocket.