Categories: Channel News

Comet to go into administration

Comet has confirmed that it will go into administration next week, with reports that it has lost £35 million in a year.

The electrical retail store, which was given a second chance just nine months ago when it was bought by OpCapita for £2, was not rejuvenated by the purchase and has struggled to turn a profit considering lacklustre consumer spending, according to the BBC. 6,000 jobs are at risk.

It is thought that the retailer was unable to compete with online stores such as Amazon, as well as supermarkets, which offered electrical products at cheaper prices.

This was despite its new owners tightening their belts and  already slashing staff numbers from around 10,000 to 6,500.

According to people close to the chain, Comet has also found itself scraping for cash after trade insurers cut credit lines to suppliers, forcing them to ask for payment for goods upfront.

Deloitte is rumoured to be lined up and waiting to handle the impending administration of the 240 stores.

Andrea Marie-Petrou

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