Jobs threat as Comet faces administration
Electrical giant Comet appeared to be on the brink of administration today in a move threatening an estimated 6,000 jobs.
The firm's demise, which was expected to be confirmed today, represents one of the biggest failures on the high street in recent years. It has stores across the region with staff facing uncertainty.
Comet has stores on Wolverhampton's St John's Retail Park, plus Walsall, Oldbury, and Halesowen.
It closed its store in Dudley's Merry Hill Centre in September.
The high street electricals market in the UK has come under pressure as cash-strapped shoppers put off purchases of big-ticket items such as TVs and large appliances and online rivals take a bigger slice of the sector.
Comet was bought for a nominal £2 by investment firm OpCapita earlier this year but has been unable to secure the trade credit insurance needed to safeguard suppliers.
Restructuring specialist Deloitte has reportedly been lined up for the administration and will begin by attempting to secure buyers for the company's 240 stores.
The move raises the prospect of a pre-Christmas rush for discounted stock as the administrator looks to wind down supplies and raise cash for creditors.
Earlier this year, the company, which was founded in 1933, announced plans to cut more than 750 jobs in the service and repair arm.
Comet's reported collapse is one of the biggest since the demise of Woolworths in 2008 and comes a month after the failure of JJB Sports. Other recent casualties have included Clinton Cards, Blacks Leisure, Game and Peacocks.
America's Best Buy recently pulled the plug on 11 giant electricals stores.
Last month saw Argos announce plans to cut 50 shops and focus more investment in online retailing.
By Mike Woods
