Halfords has been hit by a £7.3m liability following the collapse of Focus DIY.

The cycles and motor accessories retailer said in a statement that following Focus entering administration and the closure of stores, it will recognise a non-recurring expense of £7.5m in the year which ended April 1.

The expenses relates to guarantees provided by Halfords prior to July 1989. Guarantees were provided to landlords on properties leased by Payless DIY (now part of Focus DIY) when both Halfords and Payless DIY were under the ownership of the Ward White Group.

Halfords said the liability will be paid over the next three years. It said the group is taking mitigating actions to reduce these liabilities.

Focus collapsed into administration at the start of May, as revealed by Retail Week.

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