A rescue plan for the troubled PowerHouse chain has failed to save the majority of its East Anglian stores, it emerged yesterday.
New Zealand business Pacific Retail Group acquired the electrical goods company on Tuesday evening for an undisclosed sum, saying the deal would save 2000 UK jobs.
But yesterday the company confirmed that PowerHouse’s stores in Diss, Thetford and Norwich would not reopen for business, having closed when the company went into administrative receivership last month.
And the Lowestoft branch, which was expected to reopen after a devastating fire in November 2001, has also fallen victim to the company’s financial crisis.
Branches in King’s Lynn and Yarmouth will remain open, saving 11 and four jobs respectively.
Spokeswoman Helen Vinken said: “Customers will benefit from greater choice and competition in the electrical retail market, which was in danger of being dominated by a few very large players. They will receive good customer service from quality trained staff.”
Before a management buy-out in 1996, PowerHouse had been owned by the Hanson conglomerate and before that by regional electricity companies including Eastern Electricity.
Receivers Deloitte & Touche were called in last month after a trade insurer withdrew cover for some suppliers. This meant the business could not continue buying stock on existing payment terms.
Plans were immediately announced to close 93 of its 223 stores by the end of last month threatening more than 800 jobs.
Rival chain Currys then stepped in with an open offer to PowerHouse staff to talk to the company, as it is currently in the process of recruiting more than 500 staff.
Managing director Nick Wilkinson said: “Currys has always admired the calibre of the PowerHouse sales team, who have the skills and expertise that are important to us.”
Customers with queries about PowerHouse branches can call 01869 329329.
>From The Business