Comet Confirms Fire Sale, As Dixons Offers To Save Some Jobs

Everyone loves a good bargain, especially when it come to gadgets, and ailing UK tech retailer Comet has confirmed via its website that they will be starting a ‘fire sale’ soon in order to sell of its stock.

Last week it was revealed that the company would be going into administration after its owner, OpCapita, revealed they had lined up restructuring specialist Deloitte who would act as the administrator.

OpCapita bought Comet last year for the sum of £2 – but has failed to turnaround the ailing retailer in the face of a consumer downturn.

The administrator will run the business as a going concern while it assesses options for sales, closures and liquidation.

Comet said it was “urgently working on plans to secure the company’s future”, with customers benign told it’s “business as usual until furher notice” and the confirmed group would fulfill deliveries of products that have already been paid for.

Since the news, rumours of a giant fire sale have being doing the rounds and today Comet confirmed there would be a sale of all their current stock.

Revealed within a Q & A on the Comet webiste the retailer said details on the sale would be “coming soon”. But it’s not all good news for consumers as they confirmed will not be accept gift cards.

“The Administrators are currently considering the position in relation to gift cards and gift vouchers and at this stage they cannot be used to pay for items,”

“The Administrators are reviewing this position urgently.”

If you do manage to snag a bargain it’s worth noting that Comet won’t be able to fulfill any sort of warranty due to its current state. But the statement did confirm that a manufacturer’s warranty would still be eligible – but you’d have to go through them rather than Comet itself.

OpCapital is actually that same company took over video game retailer GAME, which also went into administration a few months ago – but was then eventually saved after major restructuring.

It’s a similar situation for Comet as it had lost its stock insurance and is unable to pay for its stock up-front which has led the retailer to a position where it was unable to sell some high-profile products, which has ultimately contributed to its demise.

An estimated 6,000 jobs are currently at risk, unless a buyer can be found for the company. But it’s not all bad news for its workers, as the electrical chain Dixons is offering Christmas jobs to hundreds of Comet staff who face redundancy.

Sebastian James, chief executive of Dixons Retail, said 500 Comet staff had already approached his firm.

“We are taking on a total of 3,000 people -2,000 in the stores,” he told the BBC.

“We have delayed our recruitment so that Comet colleagues who want to join our stores can get a chance to do so.

“We are hoping we will get as many as possible of the Comet colleagues to join us,” he added.

Mr James explained that the Comet staff were attractive to Dixons because they already know about its business – which includes Currys and PC World – its customers, and the products it sells.

However he said that Dixons would not be trying to buy any Comet stores from the administrators.

“As we look across the country we are pretty much on all the same parks they are, so it doesn’t really make sense for us to do that,” he said.

Dixons has set up a website, dixonscareers.com, to organise the recruitment of the Comet staff, although it is open to any applicants.

 

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