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Comet owner boosted by closure rumours

May flee UK in pursuit of Darty French love

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Kesa Electricals – the owner of Comet – has seen its shares jump almost 8 per cent today, on rumours that it may close the UK chain Comet and return to its roots in France.

Kesa said last week that UK trading had been poor, while French revenue, through the Darty chain, was up 5 per cent despite the downturn. Group like-for-like sales were down 15.2 per cent on the year.

The retailer said it would cut 150 jobs and close up to 10 stores to reduce costs.

The news follows an analyst report on Dixons from Morgan Stanley which noted that its annual rent bill was three times its annual underlying profit. Morgan Stanley suggested the retailer close the UK business and concentrating on its Scandinavian business. ®

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