UK electrical goods giant calls in receivers
The UK's third largest retailer of household electrical appliances, PowerHouse, has been placed in administrative receivership.
Link: Queen’s curtain maker in receivership
Deloitte & Touche partners Nick Dargan and Neville Khan were yesterday appointed receivers of Powerhouse – it is one of the UK’s leading electrical appliances sellers, following its acquisition of Scottish Power’s former retail division in October 2001.
The company, which operates from mostly out-of-town retail parks in the UK, had a turnover in the year ended 29 March 2003 of £398.6m. PowerHouse’s main competitors are Curry’s (part of Dixons plc) and Comet (part of Kingfisher plc).
According to Dargan, the company had already decided to close 93 of its 223 stores prior to the receivership. ‘We will continue to trade the remainder as we try to find a buyer,’ he added.
A total of 813 people – 613 in superstores and 202 working in high street shops – will be made redundant as a result of the receivership. The stores will close on 29 August.
Nick Dargan, added: ‘We are carrying out a rapid assessment of the company’s operations with a view to selling the business as a going concern.’
PowerHouse has not yet confirmed which stores and jobs will disappear. An employee briefing is expected later this week.