Staff in limbo as electrical firm closes (From The Wiltshire Gazette and Herald)

Staff in limbo as electrical firm closes

9:57am Thursday 10th August 2006 in Chippenham By Gazette Reporter

STAFF and customers of nationwide electrical retailer Powerhouse have been left in limbo after it was put into administration last month.

The Chippenham store in Hathaway Retail Park closed on July 28, creating many redundancies.

All 50 branches of the chain are due to close with immediate effect, and 500 staff working in the company's shops will now face redundancy.

Administrator BDO Stoy Hayward hopes that most customer purchases will still be honoured.

President of Chippenham Chamber of Commerce, Gareth Jones, said: ""We're sorry to hear of the closure of Powerhouse, particularly the redundancies that may occur as a result.

"We are confident, however, that the unit will appeal as a major opportunity for an alternative retailer, which could provide new jobs to replace those lost, and more."

Union Usdaw said staff were devastated after being handed redundancy letters last week.

Powerhouse was bought from administrators by New Zealand based PRG Group in 2003.

But earlier this year PRG warned that trading conditions were tough and would result in a moderate loss by the end of the financial year.

Group chairman Jock Irvine said he was extremely disappointed to take the decision, but believed it was the most responsible action.

The firm's administrators said in a statement that competition from online and high street rivals had forced company directors to bring in administrators.

Customers who have made recent purchases can call 0845 603 4037 for advice.