Focus prepares for sale

The bondholders of the troubled DIY Chain Focus DIY have this week appointed Houlihan Lokey, a specialist corporate finance house, to advise them on a possible sale.

The debtb investors, including Goldman Sachs, BlueBay and other hedge funds, have apppointed Houlihan Lokey, Howard and Zukin to act on their behalf to recoup some of the £280m of debt within the business.

Houlihan Lokey was the firm that advised the telecoms specialist Damovo on its own restructuring late in 2006, in which bondholders were handed all the equity by private house Apax.

The appointment raises the liklihood that the private equity firms behind Focus, including Apax and Duke Street Capital will have to hand over some if not all of their equity in Focus to strike a deal.