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Comet electrical store chain sold for £2 – No, seriously

The recession seems to really be hitting high street electrical stores recently, with Best Buy recently announcing all UK stores will close after one year, now the Comet chain has been sold off – for just £2.

French electrical retailer Kesa, the company that owns the Comet chain of stores, announced today that it would be selling off the brand to a private equity firm for the princely sum of 2 English pounds.

The equity firm buying out the chain is a collection of companies who will be advised on the sale by OpCapita, a company who specialises in turning around the fortunes of failing companies. Perhaps this could be a good move for Comet.

Kesa will be investing £50 million into Hailey, the new owners of Comet, and will also retain responsibility for the comapany’s employee pension scheme.

Customers who have purchased electrical goods from a Comet store or via their website in recent times need not worry about the change in ownership, as warranties and extended cover will remain with Comet with no change. Kesa will be adding £62 million in funding for warranties and Comet’s service plans and installation schemes to keep things ticking over nicely.

Over the summer, the Comet chain reported losses of 22% in sales revenue, prompting Kesa to offload the company near to the festive season.

Plans have already been announced to close one of Comet’s three stock warehouses, 9 underperforming stores and a whopping 12 of their 14 regional service centres in order to cut costs and help keep the business afloat.

With Best Buy stores across the UK closing soon and several Comet stores getting the axe, it looks as though internet shopping has notched up yet another victory over the high street.

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Via: BBC