Comet launches huge sale following their administration

Retailer Comet is the latest High Street store to suffer from the lack of public spending

16:08 08 November 2012

Comet, the large electrical retailer, has launched a huge sale one week on from going into administration. This comes as Comet is the next big brand to buckle under the strains the economic market is putting on High Street stores.

 

The sale was launched at 9am on Thursday morning, and is to affect stores only – according to The Mirror – as Comet’s online customers are not thought to benefit from the reductions.

 

This will be the largest sale Comet has had in its entire history. The news was displayed on Comet’s website where customers were told that everything was being reduced due to stock liquidation.

 

Comet was expected to go into administration next week, but some stores were closed early after members of staff were informed that the company was to be no more.

 

Private equity company OpCapita – who bought Comet last year, reportedly for a total of £2 – chose the group Deloitte as the administrators. Deloitte are thought to have been appointed early and that they will hunt for a buyer for Comet.

 

Based on reports, the company Kesa Electricals have taken the responsibility of handling the firm’s pension deficit.

 

It is understood that former Chief Executive of the retailer Dixons, John Clare, is involved with Comet’s affairs. He was recruited by OpCapita from the company Kesa Electricals.

 

The news comes at a time when consumer spending is thought to be at a low. It seems that some expensive items, such as large electrical appliances, are being purchased over the internet, as online shopping is becoming more and more popular through companies such as Amazon.

 

The BBC reported that Comet is thought to have made a loss of £35million in the last 12months.

 

The chain’s closure follows the same path that other large companies have taken in recent times, with JJB Sports being the most recent in the news this month. Other High street names to have suffered demise include Clinton Cards, Game, Peacocks and Woolworths, who shut its doors in 2008.

 

Comet was originally formed in 1933 and opened its first store in 1968.