Focus DIY has said it intends to appoint Ernst & Young as administrators, suggesting reported talks between its owner Cerberus and potential buyer GA Europe were unsuccessful.
A statement sent by the company to creditors today said the directors at Focus have decided to file for administration following a credit default, "and a realisation that there were no alternatives".
Earlier reports claimed Cerberus and restructuring firm GA Europe were in talks today in a bid to save the ailing retail chain, and had until 5pm today to close a deal.
This latest announcement from the retailer suggests these talks were unsuccessful.
Focus admitted it had "fallen short" of its predictions for 2010 after conditions proved more difficult than expected, and entered into negotiations with landlords back in January to extend the terms of its CVA, which was agreed in August 2009.
Focus chairman Bill Grimsey told DIY Week
last month that those negotiations had been "very positive and cooperative", but said the outlook remained "tough".
Cerberus, which acquired Focus in 2007 for £1, employed advisory investment bank Lazards to conduct a review of the business in November, while considering its investment options.
The retailer's most recent financial statement revealed a 3% decline in turnover to £486.9m for the year to February 2010.