Administrators of electronics chain Powerhouse have blamed rising competition from e-tailers after the firm closed its UK stores yesterday.
“Internet retailers and increased competition on the high street, coupled with the ongoing deterioration in the UK electrical retail market, has led to Powerhouse being unable to sustain its position in the retail marketplace,” BDO Stoy Hayward said in a statement.
Powerhouse’s owner, New Zealand-based Pacific Retail Group placed the group in administration after a board meeting on Tuesday.
The firm’s 50 stores in England have been shut, following the closure of 27 outlets in Scotland in February.
The move continues a bad year for high-street retailers. According to The Guardian, 55% more firms were placed in administration in the first quarter of 2006 compared with 12 months earlier, including Sock Shop and Kookaï.
The Dixons brand also recently moved online while renaming its high street shops Currys.digital in a bid to stem falling sales, though we think that’s a smart move from parent company DSG.
Curry’s is better known for selling (larger) white goods, such as cookers and washing machines, while Dixons focuses on (smaller) consumer electronics devices, such as digital cameras and MP3 players, which are better suited for e-commerce and in demand among internet users.