DIYWEEK.net

Having reached a settlement with its creditors, Homebase Ireland has successfully exited examinership and secured almost 500 jobs.
The loss-making operation, which is part of Homebase UK and Argos owner Home Retail Group (HRG), appointed an examiner from accountancy firm KPMG in July in order to provide protection to the company from creditors while it re-structured.

Homebase Ireland had seen sales plummet by 31% in four years and had failed to turn a profit for five years, having been hit hard by upward-only rent reviews on its store leases, the slump in house building in Ireland and lower consumer spending on home improvement products. HRG finally withdrew financial support for the company.

However, Homebase Ireland has now issued a statement saying that it has successfully exited the examinership process "following the approval of a Scheme of Arrangement by its creditors and by the High Court in Dublin, thereby securing almost 500 jobs...

"At the conclusion of the examinership, 13 stores have been put on a more sustainable footing and will continue to trade. Two stores, as previously announced, Carlow and Castlebar, have closed, with the regrettable loss of just over 50 jobs."

The Carlow and Castlebar outlets were both earmarked for closure early in the examinership process, along with the store at Dublin's Fonthill retail park. However, the Fonthill outlet will now stay open.

Homebase Ireland also has three other stores in Dublin, with the rest located in Limerick, Sligo, Waterford, Drogheda, Longford, Letterkenny, Killarney, Portlaoise and Navan.