During the past few years we have seen more and more British household names disappear and earlier this month we found out we could lose yet another. Focus DIY, the do it yourself and garden retailer, with 178 stores across the UK, announced on the 4th May, that they had appointed administrators.
It was agreed last week that Travis Perkins, under the trading name Wickes, will take over 13 of the company’s commercial properties, thus saving a total of around 345 jobs. Travis Perkins has paid a total £8.4 million for the acquisition of the properties and stock.
Geoff Cooper, chief executive at Travis Perkins, said: ‘The acquisition of these 13 stores, cherry picked from over 100 potential locations, further expands our Wickes business and will help us to continue our gains in like-for-like and total market share.’
With the announcement today that administrators have failed to find a buyer for the remaining stores, it looks increasingly likely that the remaining commercial properties will go under the auctioneers hammer. Joint administrators from the accountancy firm Ernst & Young said they had ‘appointed the retail consultants Gordon Brothers to advise on the sale of the stock at the remaining stores with a view to closing down the retail chain.’
Although not officially announced as a ‘closing down sale’, Focus DIY, today announced ‘massive reductions’ at its remaining 123 stores throughout the country.
It is certain that potential investors will have been keeping a beady eye on the situation at Focus DIY, in the hope of acquiring commercial property at bargain prices and this is the news these investors will have been waiting for.
Despite the poor performance of the retail sector during April, commercial retail property is still seen as a worthwhile investment. Richard Dodd, spokesman for the British Retail Consortium, recently said, ‘commercial property may be a good investment as the retail industry is sure to bounce back at some point.’
