Focus DIY

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.Letter dated 23 December 1987 from Choice Group Limited to Mr M J Williams 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 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, but decided against it.{{cite web|url=https://www.independent.co.uk/news/business/news/focus-targets-homebase-after-wickes-yields-to-pound289m-bid-700102.html|title=Focus targets Homebase after Wickes yields to £289m bid|website=Independent.co.uk |accessdate=28 February 2017|date=1 September 2000}}{{cite web|url=https://www.telegraph.co.uk/finance/4470658/Focus-abandons-Homebase-chase.html|title=Focus abandons Homebase chase|accessdate=28 February 2017|date=30 October 2000}}

In December 2000, the group expanded again, with the purchase of the Great Mills chain, from RMC Group. 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.{{cite web|url=http://www.dukestreet.com/sector-focus/cases/focus.html|title=Duke Street :: Focus|publisher=dukestreet.com}}

In December 2004, the Wickes business and stores were sold to Travis Perkins[https://www.theguardian.com/business/2007/jun/18/privateequity2 Focus 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.[https://www.independent.co.uk/news/business/news/focus-diy-falls-into-administration-as-debt-crisis-mounts-2279084.html Focus DIY falls into administration as debt crisis mounts] The Independent Focus appointed bankers Rothschild to advise it on a potential sale of the business.{{cite news|url=http://news.bbc.co.uk/1/hi/business/6254621.stm|title=Business - Focus DIY looks at sale options|date=12 January 2007 |publisher=BBC}}

File:Focus DIY - Cavendish Street Retail Park - geograph.org.uk - 1690135.jpg, West Yorkshire (2010)]]

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 and GMAC.

Costs were slashed, and under performing stores were either closed or sold to other retailers, including Homebase, Tesco, Wickes and Sainsbury's. A programme of new store formats and further cost cutting was undertaken in 2009. In February 2011, Asda 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.

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.{{cite web|url=http://news.sky.com/skynews/Home/Business/Focus-DIYAnd-Gardening-Confirms-750-Jobs-At-Risk-Following-Review-Of-Costs/Article/200810115113989?f=rss|title=1,300 Jobs Axed As Crisis Spreads|publisher=}}

File:I Want A Refund - geograph.org.uk - 1283936.jpg, Leicestershire (2009)]]

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.{{cite web|url=https://www.theguardian.com/business/2009/aug/23/focus-diy-bankruptcy-talks|title=Focus DIY in insolvency deal to save 5,000 jobs|work=The Guardian|date=23 August 2009 |accessdate=4 May 2015}}

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 placed Simon Allport, Alan Hudson and Tom Jack as joint administrators at midnight.{{cite web|url=http://news.sky.com/skynews/Home/Retailer-Focus-DIY-Is-Placed-Into-Administration-Putting-4000-UK-Jobs-At-Risk/Article/201105115985328?f=rss=rss|title=Thousands Of Jobs At Focus DIY At Risk|publisher=}}

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.{{cite web|url=https://www.theguardian.com/business/2011/may/06/kingfisher-buys-31-focus-diy-stores?INTCMP=SRCH|title=Kingfisher swoops on 31 of struggling Focus DIY's stores|work=The Guardian|date=6 May 2011 |accessdate=12 October 2014}} Ernst & Young 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.{{cite web |url=http://www.roadtransport.com/Articles/2011/06/23/139101/Focus-DIY-collapse-leaves-Wincanton-and-Lloyd-Fraser-facing-1632m.htm |title=Focus DIY collapse leaves Wincanton and Lloyd Fraser facing £2m loss |website=roadtransport.com |date=23 June 2011 |archive-url=https://web.archive.org/web/20110629052734/http://www.roadtransport.com/Articles/2011/06/23/139101/Focus-DIY-collapse-leaves-Wincanton-and-Lloyd-Fraser-facing-1632m.htm |archive-date=29 June 2011 |url-status=dead |accessdate=27 October 2019}} The sale of assets generated £70 million, leaving most creditors out of pocket, including HMRC. 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.{{cite web |url=http://www.diyweek.net/news/news.asp?id=15201 |title=Walker Group buys Focus DIY brand |publisher=diyweek.net |access-date=13 August 2014 |archive-date=16 February 2015 |archive-url=https://web.archive.org/web/20150216183353/http://www.diyweek.net/news/news.asp?id=15201 |url-status=dead }}

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Category:Home improvement companies of the United Kingdom

Category:Defunct retail companies of the United Kingdom

Category:Retail companies established in 1987

Category:Retail companies disestablished in 2011

Category:Companies that have entered administration in the United Kingdom

Category:1987 establishments in the United Kingdom

Category:2011 disestablishments in the United Kingdom