Creditors save UK and London jobs at Focus DIY

Almost 5000 UK and London jobs will be safeguarded after creditors accepted a proposal to assist Focus DIY out of administration.

Focus DIY, the home improvement chain which serves the light DIY market as well as garden centre elements to the greater UK, has been experiencing debt trouble lately.

After closing 38 outlets the rent on these outlets added up to £12m a year.

Share Cast reports that the company introduced a Company Voluntary Arrangement (CVA) to the creditors, who are mainly business landlords.

In the CVA the company proposed a deal where they will pay less than the rent they owe, which the creditors accepted.

According to the UK Press Association 93pc of creditors voted to save the company.

With the new understanding Focus DIY will pay a portion of what they owe and the leases on the empty stores will be bought off with a once-off payment equal to six month’s rent.

The news source reports on Focus DIY boss Bill Grimsey who said: “We are very pleased with the outcome of the meetings.

“Throughout this process we have engaged on a transparent basis with all our suppliers and Landlords and we look forward to continue working with them over the years ahead.

“Trading is currently ahead of management expectations and with this CVA now firmly behind us we can concentrate on managing our existing open stores and building on this stable platform to offer the best service to all our customers, suppliers, employees and landlords.”

UK jobs at the company can be rest assured of a future at the company’s still active 180 stores across the country.

“We have a solid relationship with Focus and are keen to see it survive the downturn,” Ben Grose, asset manager at British Land commented.