Woodies will invest to save Atlantic Stores

Woodies DIY is ready to invest to securre the survival of the Atlantic Homecare DIY store chain, the High Court heard yesterday. Both chains are part of the Grafton Group.

Mr Justice Paul McDermott was told of the potential investment after he agreed to extend the period of protection granted to the chain from its creditors by 30 days from 70 to 100. 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. Mr Justice McDermott agreed the extension.

Mr. Declan McDonald of PriceWaterhouseCoopers was appointed by the High Court in June as interim examiner to Atlantic Homecare after the court heard that almost all of the chain’s 13 stores were trading at a loss.

Lawyers for Mr McDonald said there had been successful negotiations with landlords concerning leases.

Even though the firm has accumulated losses of €21m in the last five years, the firm has received the support of other companies in the group.