PowerHouse Retail, the electrical group, could be put into administration after key insurers withdrew cover for some of the group's suppliers over fears about its financial position.
PowerHouse Retail, the electrical group, could be put into administration after key insurers withdrew cover for some of the group's suppliers.
The insurers, who give suppliers a guarantee that PowerHouse will pay its bills, have withdrawn cover due to doubts about PowerHouse's financial position, according to the Daily Mail.
The board of the electrical group, which is the third largest electricals retailer after Dixons and Comet, has lodged a petition to put the company into administration. This would freeze its debts "as a protective measure".
PowerHouse chairman and chief executive Derrick Broomfield said: "The trade insurers of some of our suppliers have re-assessed their view of the risk profile of their client's industry.
"After seven years of successful and profitable trading, we are doing all we can to find a solution to this situation and to keep the business trading."
PowerHouse announced record trading at the end of June with pre-tax profits rising 240% to £6m following the group's takeover of 98 Scottish Power stores last autumn.
