Electricals retailer Harvey Norman has announced that it has bought competitor Clive Peeters following its entry into voluntary administration after a difficult trading period.

The company paid A$55m (£30.4m) for the 38 operating Clive Peeters and Rick Hart shops.

The deal is expected to add between Aus$300 and Aus$400m (£166.1 and £221.5m) a year to Harvey Norman’s sales.

Chairman Gerry Harvey said: “We were always interested in Clive Peeters, but we couldn’t make a bid for it because it had a number of onerous leases.”