Powerstore fails to find credit deal
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.Administrators were appointed at Powerstore, the collapsed electrical retailer, yesterday after the company failed to reach a voluntary agreement with its creditors.
One of the administrators, David Duggins, said: "The businesses have experienced acute cash-flow problems, principally because of intense competition among electrical retailers and the difficult market conditions affecting the sector."
The company was labouring under debts of around pounds 20m and achieved sales of pounds 80m last year. The level of trading losses has not yet been revealed.
The 85 shops, which trade under the Powerstore and Homepower names, were closed to allow the administrators to assess the stock position yesterday but should be open by tomorrow.
The administrators intend to continue trading in all locations while they review the financial and trading prospects. Though some form of informal arrangement with creditors is still possible it is likely that all or parts of the business will be sold. Several expressions of interest have already been received.
The two main trading subsidiaries, Powerstore and Homepower, have collapsed, putting 1,100 jobs at risk. Two other subsidiaries, thought to employ around 200 staff, are not insolvent. They are Power Direct, which offers electricity bill payment services in the company's showrooms, and SuperCare solutions, which offers a warranty repair service.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments