6,500 Comet jobs under threat in UK

Electricals chain Comet is to be placed into administration next week in a move putting around 6,500 UK jobs under threat and marking one of the biggest high-street casualties in recent years.

The chain said it was “urgently working” on plans to secure the company’s future and has lined up restructuring specialist Deloitte to handle the administration. It is expected that administrators will seek a buyer for the business, which has 240 stores across the UK.

Jon Copestake, retail analyst at the Economist Intelligence Unit, said Comet’s troubles “come as little surprise”.

He added: “Not only has Comet faced deflationary pressures thanks to stiff competition and cheaper production costs, but core audio visual products are being undermined 
by combined platforms on smartphones and tablet computers.”

Customers with outstanding orders and those with gift cards and vouchers are being told it is “business as usual until further notice” and that the group intends to fulfil deliveries of products that have been paid for.

The administration is among the biggest since the demise of Woolworths in 2008 and comes a month after the failure of JJB Sports.

Other recent casualties have included Clinton Cards, Blacks Leisure, Game and Peacocks.