ScottishPower today advised staff and the relevant unions of its proposal to sell part of the ScottishPower Retail business to Powerhouse Retail Ltd for an undisclosed sum and the closure of the remainder of the business as part of its strategy of focusing on energy.

This follows a thorough review of the business and consideration of a wide range of options. Management has concluded that the retail business does not have the scale required to operate successfully within the highly competitive market for electrical goods.

ScottishPower has worked hard to find a solution that will safeguard as many of the 2700 jobs as possible. The proposal for partial sale is likely to result in half the jobs being preserved by Powerhouse Retail subject to the relevant consultations.

Under the terms of the proposal the majority of ScottishPower's 156 stores will be transferred to Powerhouse along with a proportion of the Warehouse and Distribution operations.

A full range of support services, including an employee helpline, will be provided to the affected employees during the forthcoming consultation process.

Ian Russell, ScottishPower Chief Executive said:
" We have devoted a great deal of time and energy in attempting to secure an option which safeguards as many jobs as possible. We believe that the Powerhouse proposal represents the best solution for the retail business and the company as a whole. "

Further Information:
Gordon Laidlaw
Colin McSeveny                                                  0141 248 8200