Reports have surfaced today that the business could be in line for up to £60 million as one of the major creditors of Comet, despite having bought the business a year ago.

The news comes just days after administrators confirmed that 6,611 jobs are under threat as a result of the insolvency process.

While the high street electrical retail sector has been exceptionally tricky during the recent recession, competitor brands such as Currys/PC World and Maplin have repositioned to a combination of online- or advice-orientated business models.

In last week’s statement the administrators said the business had been battling the changing landscape of the electrical retail sector for a number of years.

He said: “It has become increasingly difficult for it to compete with online retailers which don’t face the same overheads such as store rents and business rates.

“Our immediate priorities are to stabilise the business, fully assess its financial position, and begin an urgent process to seek a suitable buyer which would also preserve jobs.

“In the meantime, all stores will continue to trade and all employees will continue to be paid. We appreciate the cooperation and support from the management, staff, customers, landlords and suppliers at what is clearly a very difficult time.”


Source – Insolvency News