Retail group Kesa Electricals has announced that it has sold its Comet stores for the nominal fee of £2, in an effort to turn around the loss-making chain’s fortunes.
In a statement issued today, Kesa confirmed that the Hailey holding company - believed to be comprised of a group of private equity firms - had acquired Comet. In addition, Kesa intends to invest £50m of its own money into Hailey, which is being advised by retail turnaround specialist OpCapita.
“In June 2011, the Board decided to explore strategic alternatives for Comet in parallel with implementing the turnaround plan focused on restoring profitability,” said chairman David Newlands. “The board believes that a disposal on the terms agreed with the purchasers is in the best interests of ordinary shareholders.”
Comet’s new owners have promised to keep the company running as a going concern for at least the next 18 months, although the closure of some outlets has not been ruled out. Revenues at Comet were down by 22 per cent this summer.
Earlier in the week, Carphone Warehouse revealed plans to close its Best Buy UK outlets. The US chain first arrived on British shores last year, but growth failed to meet expectations.
