Rescue deal saves Bristol area DIY jobs

Focus DIY has struck a rescue deal with landlords to stave off administration which will save about 200 jobs across the Bristol area.

Landlords, who make up the bulk of the retailer's creditors, have backed a company voluntary agreement (CVA) in an effort to stop the retailer from collapsing, according to the British Property Federation (BPF).

It has stores in Clevedon, Midsomer Norton, Avonmouth and Fishponds, employing about 200 staff.

Under the terms of the arrangement Focus will pay its creditors a proportion of what it owes them, while leases for empty stores are to be bought off with two lump sums, equivalent to six months' rent. The DIY and gardening chain is still trading from 180 stores, but its 38 closed outlets cost it £12 million a year in rent and Focus has said this financial drain "threatens the immediate future of the core business".

Landlords said that while the payout they would receive in the deal is less than the value of the leases, it is more than they would get if the company were allowed to collapse.

Focus said the CVA would allow the firm to safeguard all 4,572 jobs across its trading stores and support centres, which it added are "performing strongly in the current market".

Bill Grimsey, chief executive of Focus, 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."

Firms including property giants Hammerson, British Land and Land Securities have backed the deal.