Comet management confirms plan to enter administration next week

In an email seen by Retail Week, Comet chief executive Bob Darke told staff that it will today file an intention to appoint an administrator with a view to entering administration in the week beginning November 5.

Darke said it is “urgently” working with advisers to secure a future for the beleaguered electricals retailer.

Retail Week revealed yesterday that administrators from Deloitte had been put on standby, with Comet likely to file an intention to appoint administrators today after credit insurance was pulled in recent days.

A source familiar with the situation told Retail Week that suppliers - among them very high profile brands - are becoming “aggressive”. “Lorries are already queuing up at Comet’s DCs”, the source said.

The source added that there is “no motivation” to see Comet leave the high street, and that both owner OpCapita and Deloitte will both seek to salvage at least parts of the business. It is unclear if there is any ‘white knight’ waiting in the wings to purchase the retailer.

The move comes less than a year after the electricals firm was bought from Kesa for £2 by private investment firm OpCapita.

Comet has 240 shops and employs 7,000 people.