GENERAL MERCHANDISE NEWS
Comet to be placed into administration next week
1 November, 2012 | by Retail Bulletin
Up to 6,500 jobs could be under threat at the electricals chain
According to reports, Deloitte will carry out the adminstration and Comet said it was “urgently working” on plans to secure the company’s future and it is expected that the administrators will seek a buyer for the business.
Comet was bought by investment firm OpCapita for a nominal £2 in February and is understood to have faced a cash flow crisis after suppliers demanded that it pay upfront for stock. This followed reports that OpCapita had received unsolicited approaches from rival firms interested in buying the chain.
Concerns over Comet’s future have also resulted in it trading without credit insurance, which protects suppliers against the failure of a retailer.
