Household goods retailer Harvey Norman will acquire most of the branches of its falling competitor Clive Peeters for $55 million.

Clive Peeters receiver and manager Phil Carter announced this morning that details are still being finalised, with the number and location of the stores to be disclosed next week.

"We are very pleased to deliver a timely outcome with the sale of the majority of stores to a successful and well established retailer," he said.

"We will be working closely with Harvey Norman in the next few days to finalise arrangements, and we will be able to provide further details upon completion of the sale next week."

In another statement to the stock exchange, Harvey Norman said it had consented to buy stock as well as intellectual property rights and other assets.
While both parties kept silent on the exact number of stores involved, the total is expected to be at least 30. The Peeters chain has 38 stores after closing six last month.

It is unclear whether Harvey Norman will keep the "Clive Peeters" brand.
The Peeters group broke down in May when the board appointed administrators after failing to inject new cash into the company.

National Australia Bank, which lent nearly $40 million had appointed Mr Carter and PPB to look after its interests.

The group had struggled since mid-2009 after it found out a senior finance executive, Sonya Causer, had stolen $20 million. Although much of the money was retrieved, the damage to Peeters' cash flow and reputation was more difficult to fix.

With NAB subsequently claiming that Peeters owes it $44 million, there will be a surplus of close to $10 million for other creditors once the Harvey Norman sale is completed.

Reports said many of the trade creditors are gradually receiving either cash for their stock in the hands of Clive Peeters at the time of its collapse, or have negotiated "retention of title" releases.

In recent trade, Harvey Norman shares climbed 2 cents at $3.42.