Struggling retailer Focus DIY is set to be sold to US private equity firm Cerebus for a nominal sum of £1, agreed with current owners Apax Partners and Duke Street Capital in order to end their involvement with the company. Cerebus will also pay off a estimated £225m in debt amassed by Focus.

Like many other retailers in the DIY sector, Focus has struggled as consumers have concentrated spending elsewhere and created a slowdown in the market, and supermarkets have moved in on stocking DIY products.

Focus is the UK’s third largest DIY retail chain, with 250 stores and 7,000staff across the UK.

Cerebus intends to install new management, with Bill Grimsey and Bill Hoskins, former Wickes directors who led a successful turnaround in the 1990s. 

Proposed Chief Executive Mr Grimsey said: “Focus has the potential to be one of the most successful operators in the DIY sector. 

In recent years, development has been constrained by its capital structure and uncertainty. With the resources and commitment of Cerebus, we will have the opportunity to exploit its potential in a fundamentally attractive market.”