Report: Comet teetering on brink of demise

FT claims retail mainstay could be hours away from collapse, jeopardising thousands of jobs

Beleaguered electricals giant Comet could go into administration within hours, according to a report in the Financial Times.

The firm has suffered badly during the recession and around the turn of the year former owner Kesa effectively coughed up £65m just to offload the company to private equity outfit OpCapita. Rumours surfaced two weeks ago that its new parent had received offers for the embattled business.

According to the FT, Comet ran low on operational funds as it tried to stock up ahead of the Christmas trading rush. The article adds that the retailer had been trading without credit insurance and having to deal with increasingly burdensome supplier terms.

The demise of the retailer would cap a bleak year for the UK high street. According to Comet's website, it runs 240 stores and employs about 7,000 people.