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Business News Retail
Comet back on the brink
By CMU Editorial | Published on Thursday 1 November 2012
Electronics retailer Comet is on the brink of administration according to various sources this morning.
According to reports, the electronics seller, bought by Hailey Holdings, a subsidiary of private equity group OpCapita, for £2 this time last year, has been trading without credit insurance, which will make its suppliers wary of providing goods on standard terms, which could make it hard for the retail company to stock up ahead of the all important Christmas shopping rush. 6000 jobs could be lost if the company collapses.
The demise of Comet might make some investment types question HMV’s current strategy to improve its fortunes by selling more consumer electronics, a strategy put in place by HMV’s former CEO, and a former Comet MD, Simon Fox. Though others might say that the collapse of Comet could provide a new opportunity for the flagging entertainment retailer as it moves ever more into gadgets.
