Comet poised to file for administration

It is understood Comet will announce the intention to appoint Deloitte as administrator later today as the retailer battles with paying suppliers up front for stock ahead of the crucial Christmas trading period.

The news comes less than a year after former Comet owner Kesa sold the retailer to a private equity-backed firm for £2.

Comet was bought by Hailey Holdings and Hailey Acquisitions, backed by private equity firm OpCapita, in November last year.

At the time the new owner promised to keep Comet as a going concern for 18 months and said after the period it would close some of the 250 stores to strip out costs.

Comet's expected fall into administration is just the latest bleak news to hit the high-street and follows that of Best Buy pulling out of the UK market less than a year ago by closing its 11 UK stores

The potential disappearance of Comet from the high street would leave Dixons Retail, owner of the Curry’s and PC World brands, as the only major consumer electronics retail brand with a physical presence in the UK.

Comet's and Best Buy’s woes come as consumers increasingly turn to online retailers including Amazon to buy their electrical goods.

Comet declined to comment.

This article was first published on marketingmagazine.co.uk