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.
