More UK retailers file for bankruptcy

British home improvements chain Focus DIY becomes the latest retailer to file for bankruptcy amid rising costs, putting almost 4,000 jobs at risk.

Focus DIY announced Wednesday that it was seeking to satisfy its lenders to appoint E&Y as administrators “following notification of an event of default under the senior credit facility.”

Focus DIY, which is mainly owned by private equity firm Cerberus, has been struggling to meet its financial obligations due to a protracted period of difficult trading conditions.

The company, which employs 3,919 people at 178 stores across the UK, has been struggling for years with a weak housing market and stiff competition from rivals like B&Q, Homebase and Travis Perkins.

Britain’s retail sector has witnessed a string of high-profile failures, including sweets-to-DVDs chain Woolworths and music and books chain Zavvi, in the depths of the recession in 2008-9.

A fresh downturn in consumer confidence since the start of this year has stoked fears that more struggling chains could be driven out of business.

Last month, corporate recovery firm Begbies Traynor warned of a rise in companies in financial distress, particularly among those exposed to consumer spending.