Down under retailer snaps up Powerhouse
Pacific Retail Group acquires electricals chain
September 4 2003
New Zealand retailer Pacific Retail Group as made a surprise swoop on the UK market to acquire electricals chain Powerhouse as a going concern.
Powerhouse, the UK’s largest independent electrical retailer and the third largest operator in the market, was placed in administrative receivership last month. Pacific would not say how much it is paying for the business, with the acquisition including 142 store sites and a majority of the operating infrastructure and staff contracts, according to receiver Deloitte & Touche.
The Powerhouse operation has been slimmed down, with 93 stores closed at the end of last week with the loss of more than 800 jobs.
Deloitte & Touche administrator Nick Dargan said: “We have sold this business as a going concern, which was our prime objective, and preserved over 2,000 jobs. Most commentators believed a break-up of the business was the most likely scenario, which would have generated less value for creditors.”
Pacific Retail Group is the largest appliance retailer in New Zealand, trading under the brands Noel Leeming, Bond and Bond and Big Byte.
PRG’s UK representative Peter Halkett said: “PRG is extremely enthusiastic about the Powerhouse acquisition and is absolutely confident that the stores included in the acquisition, together with the operating infrastructure and staff, can be pulled together into a strong and growing UK retail group.”
Market leader Dixons had indicated that it might buy some Poerhouse sites, as well as issuing an invitation to Powerhouse staff to apply for jobs at the Dixons-owned Currys chain. GUS, owner of the Argos chain, had also been reported to be interested.
Powerhouse ran into problems when one of its main insurers withdrew cover. The sale of the business as a going concern means that outstanding customer orders should be honoured.
