Atlantic files for administration

Atlantic Home Care, the second largest DIY retailer in Ireland, filed a petition for examinership on 6 June 2012 in order to gain protection during the process of restructuring. Atlantic is part of the DIY Division of the Grafton Group and accounts for approximately 2.75 per cent of group sales. The DIY business has been trading at a loss since 2007: the turnover has fallen by 44 per cent, from € 100 mio in 2007 to € 56 mio in 2011. The losses are being blamed on excessively high rental agreements and a difficult economic environment, which have led to a decline in consumer spending. Although Atlantic has no bank debt, it does owe money elsewhere in the order of € 53.7 mio, including € 13.3 mio to Woodie’s DIY. This is Atlantic’s sister company, which may well invest in Atlantic in order to facilitate the restructuring process. It is thought that 38 full-time and 78 part-time jobs may be lost and five of the 13 stores closed down.