Electrical retail chain Comet is on the verge of entering administration, putting 6,000 jobs at risk across its 240 UK stores. In a message sent to staff by Comet boss Rob Darke, he announced that thew chain is "urgently" working with advisers to secure its future.
The chain, which sells various electrical products from washing machines to televisions, has struggled in recent times to compete with online rivals such as Amazon as well as large supermarkets like Tesco that increasingly stock electrical goods. The company was bought by OpCapita last November for just £2 after Comet is believed to have had operational losses last year of around £35m. The equity firm said last week that they are examining a number of potential bids for the 240 Comet stores.
Consumer spending expert Martin Lewis took to Twitter to warn people to spend any Comet gift cards or vouchers they have immediately, as they will most likely be worthless if the company goes into administration.
Comet could soon be following the path of other well-known high street retailers that have succumbed to the global economic crisis since 2008, including the likes of Woolworths, JJB Sports and Clinton Cards.
Written and presented by Alfred Joyner