Focus DIY falls into administration

Focus, the DIY chain, is the latest retailer to collapse as the number of administrations in the sector reaches its highest for two years.

/v/m/k/focusdiy160.jpg

The retailer has appointed Ernst & Young as the administrator. The group is said to be in talks as to whether the chain can be sold as a going concern, or will have to cease trading.

Focus is owned by private equity group Cerberus, which bought the chain in 2007 for £1.

It appointed former MFI marketer Michael Greenhalgh as its head of marketing after the role has been vacant for a number of months.

Business advisory firm Deloitte revealed today (5 May) that retail administrations are at the highest number since the peak of the recession and have increased 30% year on year.

In the first quarter of the year 60 retailers fell into administration compared with 46 in the same period last year.

Lee Manning, reorganisation services partner at Deloitte, says: “The sector is heavily reliant on buoyant consumer spending and the increase in VAT and the Government’s austerity measures are undoubtedly hitting the sector hard.

“Whilst the retail sector has fared the worst this quarter, this trend is very much in line with the overall direction of the market.”

Earlier this year Oddbins was put into administration after a failed Company Voluntary Agreement (CVA). Thirty-seven of the chain’s 55 closed stores, but not the Oddbins brand, were sold to independent wine retailer Whittall’s Wine Merchants.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here