Homebase has gone into examinership.
The company has 15 shops in Ireland, including a store in Letterkenny and employs over 550 staff.
The home improvement store says the purpose of the examinership is to re-structure and to put the business on a sustainable footing.
Homebase has suffered a one third reduction in sales since 2009.
The stores will trade as normal during the examinership and all orders, pre-payments, credit notes and gift vouchers will be fully honoured.