John Allan will take over as chairman of electricals group DSGi when incumbent Sir John Collins retires in September.

Allan, who is chief financial officer of Deutsche Post at present, is expected to join the DSGi board as a non-executive director ahead of taking up full chairman's responsibilities to ensure a smooth handover.

Allan said: "I am delighted to be joining DSG International at this important time in its development. The group has many challenges as well as significant opportunities under the renewal and transformation plan. I am looking forward to renewing my involvement in retail and being part of the business as it continues to execute this plan and improve its offering for customers."

He will face the difficult task of helping to turn around the fortunes of the struggling group, which runs PC World and Currys, which has been one of the hardest hit by the consumer downturn.

DSGi experienced a tough Christmas, suffering a 10 per cent fall in like-for-like sales in the 12 weeks to January 10.