Electrical goods retailer Clive Peeters has no choice but to call it quits.

Due to slow sales and continuous debts, the company requested for a trading halt from the Australian Securities Exchanged and requested the National Australia Bank to waive its $10 million of $38 million debt.

Directors of the retailer also called in administrator McGrath Nicol to oversee the 45-store chain before lunch time yesterday.

The retailer suffered last year due to a $20 million employee fraud. It also held meetings and negotiations with the NAB to retain the bank's support, however, slower sales during the past month forced directors to take drastic action.

Speculations amounted that a hoped-for cash injection has fallen from two potential investors in the past 48 hours following the appointment of McGrath Nicol.

Clive Peeter's stores will operate today as usual. It employs 1,200 people across Australia.

Meanwhile, McGrath Nicol partner Colin Nicol hopes the chain will continue to operate normally beyond the administration.

Mr Nicol adds that an urgent appraisal is currently on going and might consider one of the two options: enter a deed of arrangement or sell the business.

At the end of last December, Clive Peeters posted total liabilities of $160 million, with $113 million borrowed from trade creditors.