Electrical goods chain Comet is to shut 125 more of its stores, resulting in about 2,500 job losses, administrators Deloitte, tasked with finding a buyer for the stricken company, said on Wednesday.
“In the absence of a firm offer for the whole of the business… administrators of Comet have announced to staff their intention to begin closing a further 125 stores,” said a statement from financial group Deloitte.
“This process will occur over several weeks and will leave approximately 70 stores which will remain open until all of the remaining stock is sold.
“The company’s business support functions… will be further reduced at the same time, in line with the ongoing retail business,” it added.
A Deloitte spokesman added that the stores earmarked for closure employ in the region of 2,500 staff.
Deloitte had already announced earlier this month that Comet would shut 41 stores after it fell into administration — the process whereby a troubled company calls upon independent expert financial help to remain operational.
“We remain in discussions with a small number of interested parties and hope that a positive outcome can still be achieved,” Chris Farrington, part of the Deloitte administration team, said in Wednesday’s statement.
“Unfortunately, in the absence of a firm offer for the whole of the business, it has become necessary to begin making plans… If a sale is not possible we would envisage stores to begin closing in December.”
Comet’s demise comes around one year after it struck a deal to be taken over for a nominal fee by private equity investor OpCapita. Comet was previously owned by electrical retailer Kesa, which is now called Darty.
OpCapita said it had invested £35 million ($56 million, 43 million euros) in Comet, which was founded in 1933 as a two-man business charging batteries for wireless radios.
Britain’s electrical retailers operating out of stores are facing dual pressure from tough economic conditions and online competition, analysts say.
Comet to close 125 more stores
