Focus DIY’s fate relies on landlords

The future of home improvement retailer Focus DIY depends on whether its creditors back a company voluntary arrangement (CVA) to save the chain.

The retailer’s landlords will join other creditors to vote on a deal that could save 5,000 jobs and 180 stores.

Focus has already closed 38 stores, which are costing the chain £12 million in rent payments.

The deal would see Focus paying two lump-sum dividends equal to six months of rent on its empty stores, rather than paying the full sum.

If Focus fails to get backing form 75% of its creditors, it could fall into a pre-pack administration that would leave some without payment.

In March this year, Focus split its £10m media business between Edwards Groom Saunders to handle planning and the7stars to take over buying for the brand.

Focus is the UK’s third largest DIY chain behind B&Q and Homebase.

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