Focus DIY could be extended a lifeline that could save 5,000 jobs if agreement can be reached today with its creditors, most of whom are owed rent.
Some of the country’s biggest commercial landlords, including British Land and Aviva Investors, will back a proposed company voluntary arrangement at a meeting of the company’s creditors.
Under the proposal, Focus would agree to pay its creditors a proportion of what it owes them. However, without 75 per cent of creditor support, the company will go under and, since landlords represent 90 per cent of the creditors, they will decide the outcome.
The arrangement will be bitterly opposed by the landlords of 38 stores that have closed, but they will be unable to veto the agreement without the support of unaffected creditors.
Sunday Times, Daily Telegraph