Comet 'close to administration'

The electrical retailer Comet is thought to be close to administration, according to a number of reports.

The Financial Times and trade journal Retail Week have both reported that Comet's private equity firm owner OpCapita has lined up Deloitte to act as an administrator on the business. The news comes just two weeks after OpCapita stated that it was looking at a number of bids for the retail chain.

Comet is one of many traditional retailers that has struggled with a downturn in consumer spending of late. Many people are turning to online alternatives when buying electrical items due to the cost savings they are able to offer over high street premises.

This isn't the first time Comet has hit trouble. Last year it was sold to OpCapita for just £2 after its previous owner struggled to make a success of the 240-strong chain.

Sir John Clare, former chief executive of competitor Dixons Retail, came on board as chairman when the sale to OpCapita took place in a bid to help turn the fortunes of the company around. Sir John had claimed that the company could be revived despite the operational losses of £35 million highlighted by analysts' forecasts at the time of the acquisition.

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