Almost 500 jobs have been saved after DIY chain Homebase successfully exited examinership today following the approval of an agreement with its creditors.

The chain, which has 13 stores in Ireland, entered examinership in July after its parent, Home Retail group, withdrew financial support.

Kieran Wallace of accountancy firm KPMG was appointed by the High Court as interim examiner to Homebase.

The group said in July that sales had fallen by 31 per cent since 2009 and the business had been unprofitable for each of the past five years despite remedial action taken by management. Homebase blamed the economic downturn and high rents for its difficulties.

The chain’s industry rivals B&Q and Atlantic Homecare have both used examinership in recent months to force rent cuts and it is believed that Homebase has also come to an agreement with creditors on improved lease terms.

Two stores in Carlow and Castlebar have closed in recent months with the loss of just over 50 jobs . A third store based in Fonthill Retail Park in Dublin, which had also been scheduled to close, is to remain open.

Homebase operates a further three stores in Dublin as well as stores in Limerick, Sligo, Waterford, Drogheda, Longford, Letterkenny, Killarney, Portlaoise, and Navan .