3,000 jobs go as Focus DIY closes 120 stores

AROUND 3,000 staff are set to lose their jobs after the administrator of the Focus DIY chain said it could not find a buyer for the business.

Ernst & Young said today that it would start a closing-down sale this weekend although it will still try to sell individual stores.

The administrator has already found buyers for 55 of the 178 stores, safeguarding up to 900 jobs.

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The private equity-owned firm fell into administration earlier this month after it failed to pay off debts.

The company said it is dealing with customers who are still owed goods by the chain on “a case-by-case basis”. It is not known how many customers are affected by the company’s slide into administration.

Ernst & Young has already sold 13 stores to Wickes owner Travis Perkins in an £8.4 million deal that saw the Northampton-based buyer take on all 345 staff. A further 11 stores were bought by discount homewares chain B&M Bargains, securing 211 jobs.

B&Q owner Kingfisher bought 31 stores but the workforce has been told they will have to reapply for their jobs.

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Some 100 staff at the company’s Crewe head office have already been made redundant and the remaining 180 staff are also at risk of losing their jobs.

Focus fell into administration earlier this month after it was hit by low consumer confidence and a weak housing market, which impacted sales and margins.

The chain has struggled in recent years against tough competition from rivals B&Q and Wickes.

Joint administrator Simon Allport said: “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.”