Dixons, the UK’s largest electrical goods retailer, is keen to recruit some of the 813 staff being made redundant by rival PowerHouse, which went into receivership this week.
Dixons said yesterday it was in talks with the receivers about the potential acquisition of some of the PowerHouse stores.
Currys, the company’s chain of 376 stores, issued an open invitation to PowerHouse staff, saying those who felt “unsure about their future” should come and speak to Currys.
Currys, which is in the middle of an aggressive expansion policy, said it planned to recruit 500 permanent staff immediately for both full and part-time positions.
The company will also hire 800 temporary staff to boost its sales force in the Christmas period.
Nick Wilkinson, managing director, said: “Currys has always admired the calibre of the PowerHouse sales team, who have the skills and expertise that are important to us. I hope that many of them will choose to join us and contribute to the Currys winning formula.”
PowerHouse, which employs about 3,000 staff and held the number three slot in the electrical retailing market behind Dixons and Comet, went into receivership after bankers pulled the plug on the company.
A steep fall in profitability last year had raised concerns among bankers and credit insurers and led them to withdraw cover from suppliers, bringing the group to crisis point.
Deloitte and Touche, which has been appointed receiver for PowerHouse, has already taken the decision to close 93 of the company’s 223 stores, but plans to sell the rest as a going concern.
However, analysts have suggested that it could be difficult to find a buyer for the company.
There is a considerable amount of geographical overlap with its rivals, with many of the PowerHouse stores in the same retail parks as Currys and Comet outlets.
Rivals are more likely to want to cherry-pick just a few of the stores than take on the whole chain.
Dixons said it had contacted Deloitte and Touche yesterday to “discuss what opportunities were available” but said it was unlikely to be interested in acquiring the business as a whole.
Kesa, the UK’s second largest electrical retailer, which trades under the Comet brand, said it was “monitoring the situation”. The company is understood not to be in contact with the receivers.
>From FT.com