Focus folds despite sale of 55 stores

Administrators of collapsed do-it-yourself chain Focus DIY have done deals to sell a chunk of its shops but say they have failed to find a buyer for the company, leaving about 3,000 jobs at risk.

Ernst & Young said they have agreed to sell 55 of the group's 178 stores including four in Scotland to B&M Homestores, builder's merchant Wickes and B&Q owner Kingfisher.

B&M is taking 11 of the stores, Wickes is acquiring 13 and Kingfisher has agreed to take the other 31. B&M is taking stores in Alloa, Bathgate and Dunfermline and Kingfisher is acquiring a site in Leven.

Ernst & Young is in talks to sell more shops and said the deals already concluded had secured up to 900 jobs.

But finding a buyer for the group as a whole had proved impossible and the administrators were now planning to launch a closing down sale this weekend to sell the stores' remaining stock.

Joint administrator Simon Allport said the stock liquidation was likely to result in a number of Focus stores closing with remaining staff being made redundant.

"We have been working hard to sell the business as a going concern," he said. "While we have succeeded in securing up to 900 jobs from the sale of 55 stores, finding a buyer for the whole of the business has not been possible.

"UK retailers are facing one of the most challenging retail environments in recent times and the DIY sector has become highly competitive, with only the strongest players being able to thrive and survive."