Household goods retailer Harvey Norman Holdings Ltd
(ASX:HVN) has acquired majority of the stores of failed electronics retailer Clive Peeters for $55 million.
Clive Peeters ran into trouble last year after it was found that an employee had embezzled $20 million.
In May Clive Peeters placed itself into voluntary administration after not being able to raise new capital for the company, with reports it still owes one of its creditors, NAB, $44 million.
While six stores have since been closed the remaining 38 stores will continue to operate.
The receivers of Clive Peeters, Phil Carter and Daniel Bryant of PPB, say the details of the stores in the sale are being finalized and expect to be in a position to announce the number and location of the stores included in the sale by the middle of next week.
Harvey Norman has also agreed to purchase stock as well as intellectual property rights and other assets.
As part of the agreement, Harvey Norman has agreed to provide continued employment to majority of Clive Peeters employees.
Harvey Norman’s net profit for the 2009 fiscal year came to $214.35 million
