Focus DIY looking at options

DEBT-laded Cheshire-based DIY chain Focus is working at a new plan to revive its fortunes, according to reports.

US private equity firm Cerberus - which bought the Crewe-based retailer for £1 three years ago - could be ready to sell up, The Observer said.

Cerberus is working with investment bank Lazard on the future of Focus, which went through a CVA deal last year in a move to revive its prospects.

Focus, which has 180 stores nationwide, made a loss of £21m on sales of nearly £490m in the year to 21 February.

In its directors' report, the company says the trading environment was "extremely competitive" during the period but it was in "significantly better" shape at the financial year's end than at the start.

According to accounts filed at Companies House, Focus has bank loans and overdrafts amounting to some £230m.

The newspaper speculates that a likely buyer could be Home Retail Group, which owns rival Homebase as well as Argos, as it has cash resources of £300m. B&Q, which has a market shre of 27%, may find it difficult to proceed it it were interested due to competition concerns.

Source : The Business Desk.com