This was all over the news this morning. Another one to bite the dust? Although not a direct competitor of ours its never nice to see a company go out of business. Its not good for our industry, its not good for the consumer and its very sad for all those staff that could potentially lose their jobs. Pixll wishes them all the best!
"It looks as if electrical retailer Comet could be facing administration with the potential loss of 6000 jobs, according to The Guardian.
With losses estimated at around £35m for the year to April 30th, Comet has struggled in a tough market against supermarkets and online retailers such as Amazon.
French company Kesa paid Comet's current owner OpCapita £50m to take the loss-making chain off its hands last year. OpCapita paid a token £2 for the chain.
Today's Guardian report says Comet faced a cash crunch after trade insurers cut credit lines to suppliers, forcing them to ask for payment for goods upfront. Accountancy firm Deloitte is understood to be waiting in the wings to handle the administration of the 240 stores, although they are expected to remain open for business in the meantime.
It's another sign of just how cut-throat the market for electrical goods has become during the recession. Last year Best Buy crashed out of the UK market after failing to stem mounting losses, and despite a high-profile launch."
Read on for some information about the re-introduction of RRP's. In what are difficult times could this help more Hi Fi stores stay open or will it mean increased prices for the customer?