PowerHouse buyer saves jobs

MORE than 2000 jobs have been secured with the sale today of ailing electricals retailer PowerHouse, which went into administration last month.

Deloitte & Touche has sold the company as a going concern to Pacific Retail Group (PRG), New Zealand's biggest electrical appliances retailer.

PRG is taking on 142 sites and will retain the PowerHouse brand. PRG's Peter Halkett said the group is 'extremely enthusiastic' about the deal and '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 retail group'.

Deloitte & Touche said it was 'exceptionally pleased' to have sold the chain as a going concern rather than having to break it up. A break-up would have generated less value for creditors although no price has been disclosed for the deal.