Comet sell-off: what it means for shoppersSome Comet stores could close as a result
09 November 2011
Struggling electricals chain Comet has been sold for just £2, it was announced today.
Comet's parent company, Kesa Electricals, is selling the business to a private equity firm.
It's thought some of the firm's 248 stores could be closed as a result of the sale. This follows an announcement in June that Kesa was planning to close 17 stores.
Comet sale and consumers
In an official statement, Comet said it would be 'business as usual' as far as its customers were concerned as it approached the busy Christmas trading period. The new buyers are committed to keep Comet open for at least 18 months.
Warranties on products bought at Comet will remain valid.
Which? retail expert Matt Clear said: 'Hopefully this will be a turning point for Comet. Our research shows that they need to improve their customer service - consumers didn't rate them highly in our recent surveys on the best high street shops and best online shops, and they also fared badly in our investigation into the quality of high street PC repairs.'
Electrical shops struggling
The sale comes in the same week it was announced that another electrical store, Comet's rival Best Buy, would be closing all its 11 stores.
Comet's buyer, a group of companies named Hailey, is being advised by a firm which specialises in turning around struggling retailers. Kesa will invest £50m into Comet in exchange for Hailey taking the business off their hands.
Comet lost around €26m (£22.25m) in the first half of this year.