Focus Group enters voluntary administration

Focus Group, which trades under the brands Focus on Furniture and BedsOnline, has entered voluntary administration.

The company operates out of 38 stores and four distribution centres nationally.

One of those industrial sites, a 15,503 square metre complex on a 3.2 hectare block in Melbourne’s Hallam – was acquired two years ago for $22 million by Investec, with 7.8 years left to run on a lease.

Focus Group occupies this 3.2 hectare distribution centre in Melbourne’s Hallam.

It is unknown which distribution centres will close, if any.

But it is expected some Focus Group stores will shut, the company citing “unsustainably high rents” as a reason for its collapse.

Focus Group appointed McGrathNicol last week, according to this item on website

Administrators Barry Kogan, Kathy Sozou and Matthew Caddy are now undertaking an “urgent review of operations”, while the business still trades.

Focus On Furniture, and BedsOnline are brands under Focus Group’s management.

McGrathNicol said there are unprofitable operations in New South Wales and Queensland which could be shut.

“It is clear that Focus on Furniture outlets in these states are struggling to compete effectively and on a profitable basis in the face of unsustainably high rents,” Mr Kogan told

The retailer has profitable stores in Victoria, regional New South Wales and South Australia.

Administrators will meet creditors for the first time on May 27.

The collapse comes 15 months after The Outdoor Furniture Specialists also entered voluntary administration. This franchised chain operated out of more than 40 stores.

Big W Erina Fair.

Last November, clothing retailer Roger David went into voluntary administration. It closed 57 stores a month later.

Last month, we reported that Woolworths was expecting to close 30 Big W stores across the country. Two distribution centres, in Queensland, and South Australia, would also shut.

Last week UBS released research indicating that troubled retailer Myer might hand back to landlords about 90,000 square metres of space within 15 centres by 2023.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of