B&Q Athlone expected to close

B&Q in Athlone is expected to close as the company announced that it has appointed an examiner. The company, which is a wholly-owned subsidiary of Kingfisher plc, successfully filed a petition with the High Court today seeking to appoint an examiner. The court has granted protection for the company and has appointed Declan McDonald of PWC as interim examiner. B&Q stated yesterday that based on current performance its stores in Athlone and Waterford will be closed, with the possibility of a further two store closures. "Based on management's forecasts and the company's current trading performance, it is proposed that at least two stores, Athlone and Waterford, will be closed. In addition, most of the other stores will require the agreement, by individual landlords, of substantially improved terms. In light of the required change to terms, management consider it likely that a further two stores will be closed," the statement read. The company added that during the examinership process it is anticipated that all nine stores will continue to trade; all employees will be paid, and all pre-paid goods and services, including kitchens, bathrooms and bedrooms and their installation, together with gift vouchers and credit notes will be honoured. Suppliers will be paid for goods and services supplied during the process. "The examinership process is designed to facilitate the survival of the company which has been impacted by the recession and in particular by the decline in consumer spending in the housing sector," B&Q stated. The company has nine stores in the Republic of Ireland, employing some 690 people. It operates nine large B&Q stores in Ireland; in Athlone, Cork, Galway, Limerick, Naas, and Waterford, and at three Dublin locations in Liffey Valley, Swords and Tallaght, in addition to the group's Liffey Valley head-office operation. Brian Mooney, Chairman of B&Q Ireland Ltd said: "The management team is hopeful that a sustainable business can emerge from the examinership process, based on a restructuring of the company. Our priority remains our employees and our customers. Our colleagues have been briefed on today's development, and understand that the company's objective in seeking the appointment of an examiner is to try to protect jobs and retain competition and consumer choice in the market. However, we cannot anticipate the outcome of this process which is subject to the examiner's recommendations."