Two of the Atlantic Home Care stores down for closure to stay open
23 July 2012
FACTS: On July 20th, the High Court announced that the Atlantic Home Care stores in Galway and Liffey Valley (Dublin) would remain open.
ANALYSIS: On June 6th, Grafton indicated that it sought the appointment of an Examiner for Atlantic Home Care. It was believed that under this process at least five of the 13 Atlantic stores would close. News that agreement has been reached to keep two of the five open is welcome.
DAVY VIEW: Falling revenues and high rents have meant that Atlantic accumulated loses of €21m between 2007 and 2011. The Examinership process offers a possible way for Atlantic to restructure the business with lower rents. A successful restructuring would be positive for Grafton and serves as another example of the self-help measures the group has been implementing.