PowerHouse has collapsed, with Deloitte & Touche appointed as administrative receivers.
The crisis was precipitated after a major insurer withdrew trade indemnity cover from PowerHouse.
PowerHouse has restructured recently, placing about a quarter of its stores on the market and laying off staff. At the time of receivership it employed 3,000 staff and turned over£400 million a year.
It has struggled in third place behind Dixons and Comet, in the shadow of the Competition Commission inquiry into extended warranties.
Several retailers, including Comet and Dixons, were said to be interested in taking some of PowerHouse's 170 superstores and 50 high street shops.
However, industry sources said a rescue of the entire business by a trade buyer is unlikely. 'The only way through this might be a rescue of the business in a slimmed-down form,' said one source.
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