A Dorchester store has closed after its parent company went into receivership.

Speculation mounted last week that home appliance specialist PowerHouse of South Street was to fold, as the shop closed its doors and staff put up notices informing customers about the need for a stock take.

Now nobody is picking up the in-store phone, the windows are papered over and hastily-scribbled signs have gone up saying that the shop will be closed until further notice.

A member of staff at PowerHouse, who asked not to be named, confirmed it had fallen victim to the national closures and said: "I can tell you this shop will not be opening again, we are just clearing it out now."

People who work in neighbouring businesses said they had seen the impending shutdown coming.

Butcher Adam Vyse, of the Fantastic Sausage Factory in the Hardye Arcade, said: "A woman who works there comes in here occasionally as a customer and she mentioned to me that it was closing after I asked what had happened."

Jim Hamilton, an assistant at Poundpoint in South Street, said: "Last Thursday or Friday they had a notice up in the window about a staff meeting, they must have told them about it then."

PowerHouse, the UK's biggest independent electrical retailer, placed itself in administrative receivership last month after a trade insurer withdrew cover for some of the company's suppliers. The move will allow the company to continue trading from existing stock.

A spokesman for receivers Deloitte and Touche could not confirm which stores are closing, but said: "The signs that have been put up are down to the manager's discretion.

"All 93 of the stores that were allocated to close across the country have now done so, but the rest will continue trading.

"The receivers are trying to find buyers for the 130 stores that are left which will hopefully be successful so they can remain open."

Other PowerHouse outlets in Weymouth, Poole and Christchurch seem to be unaffected by the move and their future could be assured by a quick buyout, it is believed.

David Evans, of Brewin Dolphin stockbrokers in Dorchester, said: "The City is rife with rumours that Dixons may bid for PowerHouse and that is certainly not beyond the realms of possibility."