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Scottish Power to buy Clydesdale stores

John Arlidge
Saturday 05 March 1994 00:02 GMT
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SCOTTISH POWER confirmed yesterday that it is to buy 50 superstores from the receivers of Clydesdale, the Glasgow-based electrical goods retailer. The company will pay pounds 16.9m for the leasehold properties and up to pounds 17m for associated stock, writes John Arlidge.

Scottish Power said the new superstores, 36 of which are in the Midlands and the North of England, would complement the company's retail portfolio of 89 Scottish high street stores and 15 superstores.

Clydesdale, Britain's third-largest electrical retailer, went into receivership in January. The deal with Scottish Power will safeguard 600 jobs but about 800 jobs are at risk.

Scottish Power has about 30 per cent of Scotland's white goods market, with retail sales of about pounds 90m last year and an operating profit of pounds 4.5m. Dr Ian Preston, chief executive, said: 'The collapse of Clydesdale presented us with a unique business opportunity to accelerate our existing retail strategy of incremental growth.'

In a separate development, Granada UK Rental is to acquire Clydesdale's rental accounts and several Scottish high street stores.

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