Powerhouse, the UK’s third biggest electrical retailer which is in administrative receivership, closed almost half of its 223 stores on Friday.
At least 800 people are set to lose their jobs as Deloitte & Touche, the accountancy firm handling Powerhouse’s break-up, continues to try to find a buyer for the remaining stores.
Several companies have expressed interest in buying the chain or parts of the concern, Deloitte & Touche said.
Argos, the catalogue chain owned by GUS, and the electrical retailer Dixons have been named as possible buyers.
But analysts say purchasers are more likely to be interested in cherry picking Powerhouse’s best assets rather than taking on the whole company.
“I think it will be split up. I don’t think anyone will want to take it as an ongoing concern,” Mintel analyst Richard Perks told the BBC.
“Its stores on the whole are too small for electrical retailing, which is why I wouldn’t expect to see Comet or Currys take too many of them.”
Any sales are not expected to be concluded for several weeks.
‘Boring’ stock
Powerhouse stores are on average 8,000 square feet, whereas its competitors’ outlets usually start at 20,000 square feet, although some of them are in good locations.
Powerhouse had also concentrated on the “more boring side of things,” shying away from PCs, where most of the growth has been, Mr Perks said.
Last year, the company’s profits fell to £300,000 on turnover of £384m.
The company was formed from the loss-making retail arms of three regional electricity companies and was owned by Hanson before being bought by its management in 1996.
In 2001, Powerhouse took over 98 of Scottish Power’s retail stores to become the country’s third largest electrical retailer behind Comet and Dixons.
In March 2002, the company announced it was taking up concessions in Homebase stores as part of an “ambitious growth programme”.
>From The BBC