Comet has confirmed that is will be put into administration next week after no buyers were found to save the electrical chain. This week has been tough for the retailer as Deloitte, the appointed administrators, tried in vain to find a buyer for the 240 store business, but it was to no avail.
This is one of the worst casualties of the high street since Clinton’s went into administration. But the ending doesn’t look like it will be as good for Comet as it was for Clinton’s, who were bought by American Greetings.
OpCapita, who bought the firm in February last year for just £2, has announced that stores will remain trading for now, whilst the company assesses its options. However, some 6500 jobs could be at risk.
Speaking of the demise of the retailer, Dan Wagner, a technology expert, told the BBC: “Comet failed to understand the importance of [technology] for driving business.
“It was an accident waiting to happen.”
Since the news broke of Comet’s fate, share price for Comet’s main rival, Dixons Retail, which owns Currys and PC World jumped by 15 per cent.
Comet’s history spans almost 80 years. The company was founded in Hull in 1933 by George Hollingberry, under the name Comet Battery Stores Limited. The company grew over the years and in 2005 they spent £20 million on a campaign to rebrand its image. The company wanted to distance itself from main rival Curry’s as both logos had a red background with white print.
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