Hanson buys ailing store chain
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.NIGEL COPE
Hanson, the industrial conglomerate, made a surprise move on to the high street yesterday when it acquired the loss-making Powerhouse chain of electrical stores.
Hanson already owned a 36 per cent stake in Powerhouse through its acquisition of Eastern Electricity in September. Yesterday it bought the remainder from its two joint-venture partners, Midlands and Southern Electricity.
Though the price was not disclosed, it is thought that Hanson may have been paid to take the chain off its partners' hands. Powerhouse has proved a disastrous experiment by its three owners, losing pounds 7m last year and pounds 5m in the previous year.
Eastern, Southern and Midland have already made pounds 140m of provisions to cover the costs of the disposal. The chain was put up for sale in May.
Hanson said yesterday: "This is not the start of a Hanson retail arm. It is simply a management exercise."
It is thought that Hanson has taken control of the stores to reduce losses and sell them on at a profit. The company declined to comment on possible store closures and redundancies ahead of a strategic review.
Powerhouse has 320 stores, most of which are loss-making high street sites. The company has been struggling against fierce competition from rivals such as Dixons and Comet. Most of the regional electricity companies have now sold their retail operations, with only Norweb and Scottish Power still expanding.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments