Comet’s administrators Deloitte finally delivers the bad news. 41 Comet stores will be closing down by the end of November, which means that around 1,000 jobs of Comet staff are under threat.
The first of the 41 store closures will begin next week and the Comet closing down fire sales had begun at 27 of the stores yesterday and will start at the other 14 stores early next week. Comet administrator Deloitte has already announced that 330 jobs will be axed at Comet’s head office and the Comet store closures mean that another 1,000 jobs are likely to become redundant.
When Comet fell into administration, the electrical chain had 236 stores in the UK and employed 6,611 staff. But the future of the 195 Comet stores that will remain trading over Christmas remains uncertain.
Deloitte said that the other Comet stores will continue to function normally but said that the discounts in the sale will be more generous than they have been since the Comet closing down fire sale began on November 8. Last week, Comet’s fire sale which included measly discounts of 10-20% left customers disappointed. The fire sale which was available only in stores low level of discounts on items that customers would have no one-year guarantee for.
Furthermore, Comet plans to close down the retailers’ home delivery service, risking 500 jobs. Deloitte is on the look out for a suitable buyer for the chain that suffered due to the drop in consumer confidence as Brits faced the biggest squeeze on spending since the financial crisis in 2008.
Comet experienced the crunch when it was unable to secure credit from many of its suppliers to order goods for Christmas due to a lack of cash.