Focus DIY

Focus DIY was a British do-it-yourself and home-improvement retailer that grew rapidly through a combination of new-store development and acquisitions. Its origins lay in Focus Homecentres, launched in the early 1980s by Mike Williams for AAH Holdings. The business was acquired by Choice Group in December 1987, with Bill Archer and Greg Stanley among the shareholders; Archer and Stanley had previously built and sold the Fads retail chain. The company expanded by purchasing established competitors and integrating their store networks. It acquired the Do It All chain from Boots in 1998 and operated the two businesses under the Focus Do It All identity until the separate formats were progressively consolidated. In 2000, Focus acquired Wickes, adding a substantial trade-oriented building-supplies business to a group whose principal Focus format was aimed at general consumers. The Wickes and Focus formats were initially retained as distinct concepts because they served different customer segments. Later in 2000, the group bought the Great Mills chain from RMC Group, adding a further 98 stores. These transactions made Focus one of the largest British home-improvement retailers. At its height, the group was reported to have about 430 stores and sales exceeding £1.66 billion in 2002, while the Focus retail chain itself was described as having 178 stores and more than 3,000 employees at its peak. Its principal competitors included B&Q, Homebase, Wickes and other general merchandise and building-supply retailers. Focus positioned itself as a broad, mass-market DIY chain offering home-decoration materials, tools, building products, garden goods and related supplies. The group’s financial position deteriorated after its acquisition-led expansion. The Wickes business and stores were sold to Travis Perkins in a transaction agreed in December 2004 and completed in February 2005. The disposal generated a substantial return on the original investment, but Focus subsequently faced heavy debt, weaker DIY-market demand and pressure from its banking covenants. The company recorded annual losses from 2007 and sought professional advice on a possible sale or restructuring. Cerberus Capital acquired Focus for £1 in June 2007 and appointed Bill Grimsey, a former Wickes chief executive, to lead the company. The owners and lenders supported a restructuring involving loans and fresh capital, while management reduced costs, closed underperforming stores and sold properties to retailers including Homebase, Tesco, Wickes and Sainsbury’s. A company voluntary arrangement in 2009 temporarily avoided administration, and the store estate was reduced from 256 locations in 2007 to 178 by January 2011. The rescue effort ultimately failed. Cerberus placed Focus into administration on 5 May 2011, with Ernst & Young appointed as administrator. Parts of the estate were sold to B&Q, Wickes and B&M for conversion or rebranding, while other stores were acquired by retailers including Asda. The final Focus store, in Gillingham, ceased trading on 22 July 2011. The administration resulted in the loss of up to 3,000 jobs and left creditors with substantial unpaid claims. The defunct brand was later transferred through subsequent ownership and is now associated with AHK Designs Ltd, which also owns the trademarks of other defunct British retail brands.

Focus DIY developed from Focus Homecentres, a business launched in the early 1980s by Mike Williams for AAH Holdings. In December 1987, the retailer was acquired by Choice Group Ltd. The new ownership included Williams, Bill Archer and Greg Stanley, the latter two having previously developed the Fads DIY chain. Focus subsequently pursued an acquisition-heavy growth strategy, combining organic expansion with purchases of established competitors. A major early transaction was the acquisition of Do It All from Boots in August 1998. Focus operated the acquired chain alongside its existing stores and used the Focus Do It All name during the integration period. In September 2000, the group bought Wickes, a no-frills retailer particularly associated with trade customers and building supplies. Focus’s own stores were more consumer-oriented, so the two formats were initially maintained separately. The enlarged group became known as Focus Wickes. In December 2000, Focus acquired Great Mills from RMC Group. The deal added 98 stores. Most were converted to Focus stores, while some larger locations were assigned to the Wickes format. Through these acquisitions, Focus became a national-scale home-improvement operator. By 2002, the group was reported to have approximately 430 stores and sales above £1.66 billion, and it was regarded as Britain’s second-largest DIY retailer behind B&Q. The business also considered buying Homebase but did not proceed. The group later reversed part of its expansion. In December 2004, it agreed to sell Wickes and its stores to Travis Perkins for £950 million, with the transaction completed in February 2005. Although the sale produced a large return relative to the original investment, Focus was left exposed to debt accumulated during its expansion. By January 2007, the company was close to breaching banking covenants and had appointed Rothschild to advise on a possible sale. The broader DIY market had also experienced declining sales for approximately two years. Cerberus Capital acquired Focus for £1 in June 2007. Bill Grimsey, formerly chief executive of Wickes, became chief executive of Focus. The restructuring was supported by approximately £200 million in loans and related funding from Cerberus, Bank of Scotland and GMAC. Management reduced costs, closed or sold underperforming locations and introduced revised store formats. Stores were transferred or sold to retailers including Homebase, Tesco, Wickes and Sainsbury’s. In February 2011, Asda announced the acquisition of six former Focus stores for conversion into supermarkets. Focus’s estate contracted from 256 stores in 2007 to 178 by January 2011. The company also rationalised its logistics network. In 2008, it operated a principal distribution centre in Tamworth, inherited through the Do It All acquisition, while the closure of the Severnside distribution centre was announced in October of that year because of the company’s financial circumstances. A company voluntary arrangement negotiated in August 2009 temporarily protected Focus from administration and provided a framework for debt repayment and restructuring. It did not restore the company to sustainable profitability. The retailer was reported to have made losses every year from 2007, including a £25 million loss in the year preceding its collapse. On 5 May 2011, Cerberus placed Focus into administration after a rescue deal could not be completed. Ernst & Young appointed Simon Allport, Alan Hudson and Tom Jack as joint administrators. B&Q bought 31 stores for £23 million on 6 May, while other properties were sold or rebranded by B&Q, Wickes and B&M. The administration involved the closure of more than 120 additional stores and the loss of up to 3,000 jobs. The final Focus store closed in Gillingham on 22 July 2011. The business was subsequently dissolved as a retail chain, although the Focus brand and trademarks continued under later ownership and are now associated with AHK Designs Ltd.

• 2011

  Administration and retail closure

  [1]Focus DIYen.wikipedia.org

  Focus entered administration in May, stores were sold or rebranded, and the final location closed in July.

• 2009

  Company voluntary arrangement

  [1]Focus DIYen.wikipedia.org

  Focus entered a company voluntary arrangement to restructure its liabilities and avoid immediate administration.

• 2007

  Cerberus takeover and restructuring

  [1]Focus DIYen.wikipedia.org

  Cerberus Capital acquired the troubled retailer for £1 and appointed Bill Grimsey as chief executive.

• 2005

  Wickes disposal completed

  [1]Focus DIYen.wikipedia.org

  The sale of Wickes to Travis Perkins was completed after being agreed in December 2004.

• 2002

  Peak expansion

  [1]Focus DIYen.wikipedia.org

  The group reached approximately 430 stores and reported sales above £1.66 billion, making it one of Britain’s largest DIY retailers.

• 2000

  Wickes acquisition

  [1]Focus DIYen.wikipedia.org

  Focus acquired Wickes, adding a trade-oriented building-supplies format to the consumer-focused Focus business.

• 2000

  Great Mills acquisition

  [1]Focus DIYen.wikipedia.org

  The purchase of Great Mills added 98 stores to the group, most of which were converted to Focus locations.

• 1998

  Do It All acquisition

  [1]Focus DIYen.wikipedia.org

  Focus acquired the Do It All DIY chain from Boots and began integrating its store network.

• 1987

  Focus Homecentres acquired by Choice Group

  [1]Focus DIYen.wikipedia.org

  Choice Group acquired Focus Homecentres, bringing the retailer under ownership associated with Mike Williams, Bill Archer and Greg Stanley.

Mass-market British DIY retailer serving general household consumers, with an associated trade-focused building-supplies format through Wickes before its disposal.

• Home-improvement retail · 1987

  Focus DIY stores

  The principal Focus format served general household consumers with a broad assortment of DIY and home-improvement merchandise. Stores carried decorating materials, hardware, tools, building products, garden goods and practical supplies for maintenance and renovation projects. The format was positioned as a mainstream, accessible alternative to specialist trade merchants and competed nationally with B&Q and Homebase.

• DIY retail format · 1998

  Focus Do It All

  Focus Do It All was the transitional branding used after Focus acquired the Do It All chain from Boots in 1998. It represented the integration of the acquired stores with the existing Focus estate before the network was more broadly rebranded. The format extended Focus’s national presence and maintained the company’s emphasis on consumer-oriented home improvement.

• Trade-oriented DIY and building supplies · 2000

  Wickes

  Wickes operated as the group’s more trade-focused and building-supplies-oriented business after its acquisition by Focus in 2000. Its stores complemented the consumer emphasis of Focus by serving builders, contractors and customers undertaking larger construction or renovation projects. The Wickes business remained a separate format and was sold to Travis Perkins in a transaction completed in 2005.

• DIY retail stores · 2000

  Great Mills stores

  The Great Mills estate joined Focus after its acquisition from RMC Group in December 2000. The transaction contributed 98 stores. Most locations were rebranded as Focus, while selected larger stores were converted to Wickes, making the acquisition a significant component of the group’s national expansion.

• 2011

  Administration and store disposalsOther

  Background

  Attempts to secure a rescue deal failed after years of losses and declining store numbers.

  Action taken

  Cerberus placed Focus into administration. Ernst & Young sold selected stores and assets to retailers including B&Q, Wickes and B&M, while the remaining stores were closed.

  Aftermath

  The final store closed on 22 July 2011, up to 3,000 jobs were affected and most creditors received only limited recovery from asset sales.

  Stores sold to B&Q. 31 stores for £23 million (May 2011)

  • B&Q — Bought 31 Focus stores for conversion and reopening under the B&Q brand.
  • Asda — Announced the purchase of six Focus stores for conversion into supermarkets.

  Source

• 2009

  Company voluntary arrangementStrategy

  Background

  Focus faced continuing financial pressure and narrowly avoided formal administration.

  Action taken

  A company voluntary arrangement was negotiated to restructure the business and provide a timetable for debt repayment.

  Aftermath

  The arrangement delayed administration but did not prevent the eventual collapse of the retail chain in 2011.

  Source

• 2007

  Debt restructuring under Cerberus ownershipStrategy

  Background

  Focus was close to breaching banking covenants and was struggling with debt accumulated during its acquisition-led expansion.

  Action taken

  Cerberus Capital acquired Focus for £1, appointed Bill Grimsey as chief executive and supported a restructuring involving owner and lender funding.

  Aftermath

  Costs were reduced, stores were closed or sold and the retail estate was progressively reduced, but the company did not return to durable profitability.

  Acquisition price. £1 (June 2007)

  Source

• 2004

  Sell Wickes to Travis PerkinsM&A

  Background

  Focus had expanded substantially through acquisitions, but the group later pursued a more focused structure and agreed to dispose of its Wickes business.

  Action taken

  The Wickes business and stores were sold to Travis Perkins for £950 million, with completion in February 2005.

  Aftermath

  The transaction generated a large return relative to the original investment, but Focus subsequently continued to face debt, market and profitability pressures.

  Transaction value. £950 million (Agreed December 2004; completed February 2005)

  Source

1. 1Focus DIYen.wikipedia.org