US hedge fund Cerberus and another unnamed retail investor are poised to acquire troubled UK DIY chain Focus for an undisclosed sum.

US hedge fund Cerberus and another unnamed retail investor are poised to acquire troubled UK DIY chain Focus for an undisclosed sum.

The UK’s third largest DIY retail chain confirmed in a statement that it is in talks with “a company affiliated with Cerberus European Investments LLC concerning the sale and that, subject to contract, these negotiations are expected to be concluded in the near future”.

Owned by private equity firms Apax Partners and Duke Street Capital, the chain has 250 stores across the UK.

The company, which is worth £250 million, has debts of £280 million. A team from Rothschild led by director Andrew Thomas has been appointed to manage the sale after Focus failed to reach a debt restructuring agreement with its creditors.

Chairman Bill Archer founded Focus 20 years ago and has expanded the company through acquiring rivals such as Do-It-All and Great Mills.

A falling DIY market has seen its profits slip to £42.7 million in the 12 months to October 2006, with sales dropping 5% to some £700 million.