Decision on troubled Comet’s future by Christmas

Comet-owner Kesa yesterday revealed a 22 per cent plunge in sales amid a slump in consumer confidence but said it will hold on to the loss-making chain for the time being after failing to secure a buyer.

Recent reports have suggested that talks between Kesa and the last two interested buyers – corporate restructuring specialist Hilco and private equity group OpCapita – have come to a halt.

Kesa chief executive Thierry Falque-Pierrotin declined to comment on any bids the group has received for Comet, which has 250 stores and employs some 10,000 staff, but said he expected to make a final decision on the chain’s future before Christmas.

“We announced at our full-year results in June that in parallel to a turnaround plan at Comet we’d assess other strategic alternatives [and] that process is ongoing,” he said.

The group noted that laptops, televisions and big-ticket items such as large domestic appliances were not selling well, while iPads and tablet computers, headphones and larger TVs with 43-inch plus screens were performing well.

Kesa, which also owns Darty France and Dutch retailers Vanden Borre and BCC, reported a 9.9 per cent slide in overall group sales.

David Jeary, an analyst at broker Investec, said he expects full-year forecasts for Kesa to be reduced following yesterday’s update.

SCOTT REID