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Retail

6000 jobs at risk as Comet nears administration - report

6000 jobs at risk as Comet nears administration - report

Thu 01 Nov 2012 10:30am GMT / 6:30am EDT / 3:30am PDT
Retail

Sources claim that the UK's second biggest electronics retailer is in crisis

The UK electronics retailer Comet us expected to enter administration today, putting around 6,000 jobs at risk.

According to a report from The Guardian, Comet lost 35 million in the year ending April 2012 due to increasing competition from supermarkets and the ongoing financial crisis in Europe. Comet is the UK's second largest electronics retailer after Dixons, employing 6000 staff across 240 stores.

The Guardian's sources claim that trade insurers have cut credit lines to Comet's suppliers. The financial services conglomerate Deloitte is ready to hand le the administrative process, though Comet will continue trading for the time being.

Comet is owned by OpCapita, the same company that bailed out GAME during its recent crisis. OpCapita purchased Comet from the French company Kesa nine months ago for the nominal sum of 2. In the sales document, OpCapita pledged to keep the chain running for at least 18 months.

9 Comments

Kingman Cheng
Illustrator and Animator

929 150 0.2
Heard this on the radio this morning, another one bites the dust. : /

Good luck to all you guys who are at risk of losing your jobs. Would have been nice to at least cover the holiday period first...

Posted:A year ago

#1

Bruce Everiss
Marketing Consultant

1,716 598 0.3
Commiserations to those effected.

High street retail is doomed. It is just mainly being used as a showroom now by people who then go and get the best price online from retailers with vastly lower overheads.

Posted:A year ago

#2

Thomas Dolby
Project Manager / Lead Programmer

318 253 0.8
Sad to see it go, but as Bruce mentions, it's just become outdated. Comet is one of the last places I look when I'm considering electronics.

Posted:A year ago

#3

Anthony Gowland
Lead Designer

155 428 2.8
Which makes me wonder where will people go to "try before you buy" on things like televisions and stereos, or will they just learn to trust online reviews for high value items? How are specialist retailers (like Richer Sounds) doing these days?

Posted:A year ago

#4

Dave Herod
Senior Programmer

517 731 1.4
But if they do all disappear, how do we go check out products before we buy them? I know if I buy a TV I'd like to see one running in a shop next to a bunch of others to see what the quality is like first. It's almost like they should charge money just to enter their shop and have a look, then sell the actual products the same price or cheaper than online retailers. As it stands, they're shouldering the burden of previewing items and being punished for it.

Posted:A year ago

#5

Kingman Cheng
Illustrator and Animator

929 150 0.2
@Dave + Anthony, that's a brilliant point.

I like to check out my TV's as well before buying it.

Not only the 'try before you buy' problem, but not everyone buying TV's are technology savvy for lack of better words. Some customers like to ask for advice because they're not sure what to buy. And another thing is say that I know my TV has just gone kaput one evening when I'm at home, I'd have to order online and wait for a delivery. Where as with a retail store I could just pop in the next day after work after a bit of online research and just pick up a brand new TV. Pros and cons...

Posted:A year ago

#6

John Bye
Senior Game Designer

477 434 0.9
Dave - "I know if I buy a TV I'd like to see one running in a shop next to a bunch of others to see what the quality is like first"
Sadly most electronics retailers don't know how to setup their TVs and all too often feed them all from a splitter box hooked up to a Freeview or Sky box in the back somewhere, which makes any comparison worthless - they all look rubbish. Last time I bought a TV I got the store to hook it up to a blu-ray player and pop a 3D movie in so I could see it running properly. After all that effort though, they realised they didn't actually have that model in stock, so we ended up driving 5 miles to the next town and got it from Richer Sounds for 50 less. *face palm*

Edited 1 times. Last edit by John Bye on 1st November 2012 2:37pm

Posted:A year ago

#7

James Verity

132 25 0.2
only electrical item I bought online was a Dyson Animal from CO-OP... all other electrical and gadgets I buy from a high street retailer (John Lewis for example), I still like the idea of somewhere to go when it goes wrong, I dont like 30 day warranty then pass the buck to the Manufacturer idea most online places use...

its not looking good for the high streets...

Posted:A year ago

#8
I don't understand why the retail "shops" haven't started seeing themselves as a Point of marketing rather than a point of sale and started deriving most of their revenue from advertising "products" in their stores for the manufacturers.

One of the reason Apple is so popular now is the Apple shop, a place where people can go, try stuff, get advice, get technical support and all in an environment that's main purpose is not to sell you anything.

Same with clothes, same with games. Personally I think that's the future of the retail high street shops. It's certainly more effective marketing than Facebook or even Google.

Posted:A year ago

#9

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