UPDATE: Comet to go into administration next week

Retail, Tech Digest news

cometshutters.jpgFollowing on from our post earlier today highlighting high-street gadget retailer Comet’s current financial woes, it’s now been confirmed that the company will go into administration next week.

As many as 240 shops could be set to close, with some 6,000 jobs now at risk.

It’s the second time in less than a year that the company’s future has been called into question, with current owners OpCapita buying the brand for just £2 back in February.

However, the brand’s fortunes have not turned around, with Comet thought to have lost around £35 million since April.

OpCapita were faced with Comet with the same problems as gaming retail chain GAME did before OpCapita stepped in to save it. Comet were 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.

We’ll keep you updated with the fate of Comet as this story unfolds.

Via: Guardian

Gerald Lynch
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