Atlantic Homecare, which is owned by the Grafton Group, has filed a petition seeking the appointment of an examiner.
Building materials group Grafton bought the Atlantic DIY chain in 2005.
In a statement, Grafton said that the Atlantic business has been severely impacted by the recession, especially by the fall in consumer spending and in the housing sector.
The company's ability to reduce operating costs has been inhibited by the retention of "upward only" rent reviews for existing leases, it added.
