High street electrical retailer Comet, is looking likely to enter administration sometime in the next week, putting more than 6,000 employees at risk of losing their jobs.
Comet has been struggling for a while now, though it was thought when it was bought by OpCapita just less than a year ago for £2, that it might be possible to turn it around. The London based investment firm drafted in ex-Dixons head John Clare, but despite massive staff layoffs and store closures, the retailer’s sales have continued to dwindle.
Much of the downturn is being blamed on the growth of etailers like Amazon, as well as new competition from supermarkets. The electrical hardware business has always been very competitive, with low margins on individual sales. Now with Comet’s credit line cut off, it looks to have drawn its last breath.
However that’s what everyone said about GAME and after its purchase by OpCapita it is managing to hold on for now.
According to The Guardian, Audit firm Deloitte is waiting for the nod to take over the administration of the company. It could be announced as soon as this afternoon, but is expected to take place sometime in the next week.
Comet is far from the first large British company to enter administration in the past 12 months. GAME was the big one earlier this year, but JJB Sports also went through one. Both names survive but as a shadow of their former selves, with far fewer outlets and far fewer employees.
KitGuru Says: Do any of you shop in Comet any more? It’s been almost a decade since I used a high street retailer for electronics.