Government to investigate Comet crash

Probe launched as report emerges that OpCapita and its backers charged Comet millions in fees despite the heavy losses

The Department for Business, Innovation and Skills has launched an investigation into the saga of electrical chain Comet's demise.

According to various reports, the Insolvency Service has been given the job of looking into the whole story following a number of complaints by MPs.

Comet was bought in 2011 for just £2 by Hailey Acquisitions, an investment company put together by Henry Jackson of OpCapita.

But it has since emerged that OpCapita and its backers charged Comet millions for fees despite the retail outfit clocking up losses.

The collapse of Comet, which will see its remaining stores close their doors for the last time today, is the biggest UK high street failure since Woolworths in 2008. In total Comet employed just under 7,000 people.

Administrator Deloitte admited it remains in talks with a handful of parties over the sale of the internet business and the Comet brand/locations.

Yesterday it emerged that the taxpayer will have to foot the £49.4m bill for unpaid redundancy and tax payments, as the administrators had failed to raise enough money from the winding down of the company.

Secured creditors such as Hailey Acquisitions will receive just under £50m - a £95m shortfall on the total amount owed, but unsecured creditors such as HMRC and Comet gift card holders will receive nothing, it is believed.