Feeds

Comet confesses: The receivers are among us even now

Dixons shareholders skip and clap their hands for joy

Providing a secure and efficient Helpdesk

Comet has finally confirmed that administrative receivers will be landing on its door step early next week.

It is understood that Deloitte will review the options for the ailing retailer which include selling it as a going concern, scaling it back or liquidating it. A spinner at the chain told The Channel: "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."

She said this would happen in the week commencing 5 November, but did not specify an exact date.

"In the meantime the board is urgently working with its advisers to seek a solution to secure a viable future for the company," the spokeswoman added.

Comet, which employs 7,000 staff across 240 stores, was flogged to venture capitalist OpCapita for £2 last November.

The equity player brought in ex-Dixons boss John Clare in January to rescue the biz, but the loss of trade credit insurance - a safety net for suppliers - meant he was facing an uphill battle.

It is understood that as potential buyers circled Comet last month, suppliers became even more wary of dealing with the retailer - and at a time when the biz was struggling to find the cash to pay for kit upfront to stock shelves for Christmas.

Comet and other retailers have suffered at the hands of web boutiques offering cheap deals, and vendors such as Apple building shimmering white stores that offer shoppers a 21st century shopping experience. Comet has been trading since 1933, which was when it was founded by George Hollingbery in Hull as Comet Battery Stores.

With potentially one less competitor in town, Dixons Retail's share price rallied 12.5 per cent this afternoon. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Special pleading against mass surveillance won't help anyone
Protecting journalists alone won't protect their sources
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Apple's iPhone 6 first-day sales are MEANINGLESS, mutters analyst
Big weekend queues only represent fruity firm's supply
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Bill Gates, drugs and the internet: Top 10 Larry Ellison quotes
'I certainly never expected to become rich ... this is surreal'
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
EMC, HP blockbuster 'merger' shocker comes a cropper
Stand down, FTC... you can put your feet up for a bit
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.