DUBLIN: The High Court has approved a rescue plan for DIY chain Atlantic Homecare, part of the Grafton Group.
The court was told the examinership of the company had resulted in a better result than originally expected with fewer store closures and job losses expected. Fresh investment of 5.7m euros has also been secured.
Under the scheme before the court, two stores in the group, Limerick and Newbridge in Co Kildare, will close and Woodies DIY will invest 5.7m euros in Atlantic Homecare.
The chain's difficulties, counsel said, were mainly due to the deterioration of the economy, high rents and because its staffing levels were more reflective of boom times in DIY sector rather than in a recession.
An examiner was appointed earlier this year after it emerged most of the chain's 13 stores were trading at a loss. Mr Justice Sean Ryan said he had no hesitation in approving the scheme of arrangement, which will see creditors paid 32% of what they are owed. Lawyers for the examiner said every creditor had voted in favour of the scheme.
