The electrical goods chain Comet is to go into administration, it said Thursday, placing the jobs of about 6,500 employees at risk.
The company confirmed plans to enter administration next week in what will be a major retail failure if the chain of 240 branches does not secure a last-minute rescue.
“Comet Group Limited can confirm that it has today taken steps to seek the protection of the court with a view to the company entering into administration during week commencing 5th November 2012,” the firm said.
“In the meantime the board is urgently working with its advisers to seek a solution to secure a viable future for the company.”
It did not specify who the administrators would be. The advance notice of appointing administrators gives five days for a company to discuss possible rescue plans.
The likely collapse comes after Comet was taken over by private equity investor OpCapita in May for a nominal £2 from Kesa, now called Darty.
OpCapita says it has since invested £35 million in the group, which was founded in 1933 as a two-man business charging batteries for wireless radios.
Media reports said that Comet has been unable to secure the trade credit insurance needed to order supplies without paying cash up front.
Electronics retailers are facing dual pressure from tough economic conditions and the rise in online sales, while other retailers are also feeling the pinch.
JJB Sports went into administration a month ago, Clinton Cards in May and Blacks Leisure in January.
Retail chains shut an average of 20 stores per day in the first six months of 2012, according to consultants PwC.
Electrical retailer Comet to go into administration
