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Latest NewsEconomics, government & businessJob creation and losses

Sudden closure causes shockwaves at electrical retailer Powerhouse

by Georgina Fuller 2 Aug 2006
by Georgina Fuller 2 Aug 2006

Workers at Powerhouse were left “devastated” today after the electrical retailer called in the administrators, putting around 800 employees out of work.


Powerhouse, the UK’s third largest electrical retailer with 53 shops, sent staff home with a package outlining their redundancy terms after New Zealand-based owners, PRG, decided to place the group into administration.


Earlier this year, PRG warned that the retailer it faced tough market conditions and was expected to make a moderate loss for the last financial year.


John Hannett, general secretary of retail union Usdaw, said: “Our members in Powerhouse have worked miracles in keeping the company afloat in the intensely competitive electrical goods sector.


“They turned up for work today to be told the company has gone into administration and some have already been sent home. This has been a devastating blow for them.


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“Our members have shown incredible loyalty to Powerhouse in often difficult times so they deserved better treatment than this,” he added.


Hannett said Usdaw will work closely with the administrators to makes sure its members get the payouts they are entitled to.

Georgina Fuller

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