Trouble at retailer Comet as administration looms

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cometshutters.jpgUK gadgets and electronics high street retailer is in serious financial trouble, a report published by the Telegraph reveals today. Owners OpCapita may be forced to put the chain into administration.

In an ironic turn, OpCapita now face with Comet the same problems as gaming retail chain GAME did before OpCapita stepped in to save it, with Comet under pressure from electronics manufacturers to pay for stock up front rather than from the profits of falling sales. Comet is now trading without credit insurance, meaning that the brand cannot guarantee to electronics manufacturers that they will get money back after sales should something happen to the chain.

For GAME, this lead to big-name titles such as Mass Effect 3 being missing from shelves, and now Comet are in a position where high profile gadgetry could be missing from stores.

OpCapita have claimed that offers have been made for the brand, but whether or not it will be enough to save the 6,000 jobs now under threat remains to be seen.

Via: Telegraph

Gerald Lynch