Expert Comments On Retailer's Announcement
An insolvency expert at Irwin Mitchell has warned that Focus DIY’s announcement it is going into administration is “a timely reminder” of the difficult economic conditions which firms are continuing to contend with.
The retailer has confirmed that it is set to appoint Ernst & Young as an administrator after it was decided there are no other alternatives for the company to consider.
It added in a statement that the decision had been made to protect the interests of creditors, while all stakeholders and staff which work for the firm have been informed of the decision. Focus DIY is thought to employ around 4,000 members of staff.
Discussing the move, Chris Jones, a Partner and insolvency specialist at Irwin Mitchell’s Manchester office said: “This announcement is a timely reminder ahead of the Government’s latest insolvency statistics due to be published on Friday that levels of corporate distress remain high.
“Focus operates in one of the most competitive areas in retail and its high gearing always meant it was vulnerable to a fall in discretionary spending power and a tightening of belts amongst UK households.
“The business has restructured a number of times in recent years but sadly now looks like it has run out of options.”