Woodies ready to step in to save Atlantic
Published: 16 August, 2012
DUBLIN: Woodies DIY is prepared to invest in a plan aimed at securing the survival of the Atlantic Homecare DIY store chain, the High Court heard yesterday. Both retail store chains belong to the Grafton Group.
Justice Paul McDermott was told of the proposed investment after he agreed to extend the period of protection granted to the chain from its creditors from 70 to 100 days.
In June, the High Court appointed Declan McDonald of PriceWaterhouseCoopers as interim examiner to Atlantic Homecare after the court heard that most of the 13 Atlantic stores were trading at a loss.
Yesterday, the court heard that the additional 30 days was being sought by the examiner so that he could finalise a scheme of arrangement which, if approved by the court, would allow the business exit examinership and continue to trade as a going concern. Lawyers for McDonald said there had been successful negotiations with landlords concerning leases.
Atlantic continued to trade with the support of other companies in the group while having an accumulated loss of 21m euros for the last five years.