Focus DIY has announced its intention to call in the administrators, casting doubt on the future of stores in Angus and Fife.
The company’s website stopped accepting orders on Wednesday afternoon and Ernst and Young were expected to be officially appointed as administrators at midnight.
“Following notification of an event of default under the senior credit facility, and a realisation that there were no alternatives that could be explored any further, Focus directors have come to the conclusion that to protect the interests of creditors they have no choice but to seek protection through filing a notice of intention to appoint administrators,” said a statement from the company.
“The directors have sought consent from the business’s lenders to appoint E&Y as the administrators. All stakeholders including staff have been informed.”
It is not the first time that the chain, which has branches in Leven, Glenrothes, Dunfermline, Forfar and Arbroath, has been on the brink of going under.
The Crewe-based company was bought by private US equity firm Cerberus in 2007 for just £1 a deal under which the new owners agreed to take on the chain’s £174 million debts.
Two years later, Focus DIY entered a Company Voluntary Agreement to stave of administration
The chain started in 1987 with just 12 stores but grew quickly to become one of the most prominent players in the UK DIY market, with 178 stores employing almost 4000 people.
However, it has been badly hit by the fall in consumer confidence and the depressed housing market.