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Focus was a British
do-it-yourself "Do it yourself" ("DIY") is the method of building, modifying, or repairing things by oneself without the direct aid of professionals or certified experts. Academic research has described DIY as behaviors where "individuals use raw and semi- ...
and
home improvement The concept of home improvement, home renovation or remodeling is the process of renovating, making improvements or making additions to one's home. Home improvement can consist of projects that upgrade an existing home interior (such as electr ...
retailer, founded in 1987. The retailer grew by acquiring rival retailers such as Payless, Do It All and Great Mills; by its peak in 2002, it was the second-largest home improvement retailer in the United Kingdom with 178 stores and over 3,000 employees, behind B&Q. However, Focus would be overtaken by rivals
Homebase Homebase was a British Home improvement center, home improvement and garden centre retailer that operated across the United Kingdom and Ireland. It was founded by British supermarket chain Sainsbury's and Belgian retailer GIB Group, GB-Inno ...
and Wickes in the mid-2000s. The company began running losses every year from 2007. In the year up to 2011, the company had a loss of £25 million.Ernst & Young. Administrators' Statement of Proposal. 24 June 2011 Focus entered administration on 5 May 2011, with
Ernst & Young EY, previously known as Ernst & Young, is a multinational corporation, multinational professional services partnership, network based in London, United Kingdom. Along with Deloitte, KPMG and PwC, it is one of the Big Four accounting firms, Big F ...
appointed as administrators. The administrators sold 55 stores to B&Q, Wickes and B&M to be rebranded. The remaining 123 stores were all closed by 22 July 2011. The defunct Focus brand is owned by AHK Designs Ltd, who also own the defunct
Land of Leather Land of Leather was a furniture retail store based in Northfleet, Kent in the United Kingdom. It operated in the United Kingdom and Republic of Ireland, Ireland. The company was hit hard by the downward slope in the United Kingdom's housing m ...
and MFI brands.


History

The company had its origins in the beginning of the 1980s, when Mike Williams launched Focus Homecentres for AAH Holdings plc. In December 1987, Focus Homecentres was acquired by Choice Group Ltd. 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. This included the purchase of the Do It All DIY chain from
Boots A boot is a type of footwear. Most boots mainly cover the foot and the ankle, while some also cover some part of the lower calf. Some boots extend up the leg, sometimes as far as the knee or even the hip. Most boots have a heel that is clearl ...
in August 1998. Until 2001, both chains were rebranded as Focus Do It All. The company added a further 131 stores, with the purchase of Wickes in September 2000, a no frills DIY chain which focused on building supplies to the trade. This was whilst the existing Focus company had targeted the consumer end of the market. The two store formats were thought to complement each other, and so were retained as separate entities. The group became known as Focus Wickes. The company also considered acquiring
Homebase Homebase was a British Home improvement center, home improvement and garden centre retailer that operated across the United Kingdom and Ireland. It was founded by British supermarket chain Sainsbury's and Belgian retailer GIB Group, GB-Inno ...
, but decided against it. In December 2000, the group expanded again, with the purchase of the Great Mills chain, from
RMC Group RMC Group plc (formerly "Ready Mixed Concrete Limited") was a ready mixed concrete, quarrying and concrete products company headquartered in Egham, United Kingdom. It was listed on the London Stock Exchange and was once a constituent of the FTSE 1 ...
. 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 December 2004, the Wickes business and stores were sold to Travis PerkinsFocus DIY sold for £1
''The Guardian''
for £950 million, making a tidy return on the £350 million initial investment. The sale was completed in February 2005. 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.
The Independent
Focus appointed bankers Rothschild to advise it on a potential sale of the business.


The "new" Focus

Cerberus Capital purchased Focus DIY for £1 in June 2007, and appointed Bill Grimsey, 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 £200 million via loans by the owners Cerberus Capital,
Bank of Scotland The Bank of Scotland plc (Scottish Gaelic: ''Banca na h-Alba'') is a commercial bank, commercial and clearing (finance), clearing bank based in Edinburgh, Scotland, and is part of the Lloyds Banking Group. The bank was established by the Par ...
and GMAC. Costs were slashed, and under performing stores were either closed or sold to other retailers, including
Homebase Homebase was a British Home improvement center, home improvement and garden centre retailer that operated across the United Kingdom and Ireland. It was founded by British supermarket chain Sainsbury's and Belgian retailer GIB Group, GB-Inno ...
,
Tesco Tesco plc () is a British multinational groceries and general merchandise retailer headquartered in the United Kingdom at its head offices in Welwyn Garden City, England. The company was founded by Jack Cohen (businessman), Sir Jack Cohen in ...
, Wickes and
Sainsbury's J Sainsbury plc, trading as Sainsbury's, is a British supermarket and the second-largest chain of supermarkets in the United Kingdom. Founded in 1869 by John James Sainsbury with a shop in Drury Lane, London, the company was the largest UK r ...
. A programme of new store formats and further cost cutting was undertaken in 2009. In February 2011,
Asda Asda Stores Limited (), trading as Asda and often styled as ASDA, is a British supermarket and petrol station chain. Its headquarters is in Leeds, England. The company was incorporated as Associated Dairies and Farm Stores in 1949. It expanded ...
announced the purchase of six stores from Focus DIY, which were converted into supermarkets later that year. By January 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 Tamworth, which was acquired with Do It All in August 1998. The closure of the Severnside distribution centre was announced in October 2008, citing adverse financial circumstances.


Administration

In August 2009, Focus narrowly avoided administration, when BDO Insolvency practitioners achieved a company voluntary arrangement. This was to restructure, and repay debts over a contracted period of time. 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 & Young EY, previously known as Ernst & Young, is a multinational corporation, multinational professional services partnership, network based in London, United Kingdom. Along with Deloitte, KPMG and PwC, it is one of the Big Four accounting firms, Big F ...
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 £23 million, with a plan to refit the properties and reopen them as B&Qs by July 2011, with Focus employees transferring to the stores.
Ernst & Young EY, previously known as Ernst & Young, is a multinational corporation, multinational professional services partnership, network based in London, United Kingdom. Along with Deloitte, KPMG and PwC, it is one of the Big Four accounting firms, Big F ...
announced the closure of the remaining stores, which were over 120, which resulted 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 £1 billion. The sale of assets generated £70 million, leaving most creditors out of pocket, including
HMRC His Majesty's Revenue and Customs (commonly HM Revenue and Customs, or HMRC, and formerly Her Majesty's Revenue and Customs) is a Departments of the United Kingdom Government, department of the UK government responsible for the tax collectio ...
. On 22 July 2011, the final store, which was in Gillingham, ceased trading. In December 2011, the brand was bought by the Walker Group, which owns Victoria Plumb. The trademarks are now owned by AHK Designs Ltd.


References


External links

* {{DEFAULTSORT:Focus (Diy) Home improvement companies of the United Kingdom Defunct retail companies of the United Kingdom Retail companies established in 1987 Retail companies disestablished in 2011 Companies that have entered administration in the United Kingdom 1987 establishments in the United Kingdom 2011 disestablishments in the United Kingdom