Member Article

Inquiry into Comet demise

The Insolvency Service will conduct an inquiry into Comet’s collapse, as Administrators oversaw the closure of the remaining 35 stores this week.

According to Deloitte, unsecured creditors stand to lose £233m and the Government is set to lose £49.4m in redundancy payments and tax revenues.

Private investment firm OpCapita had failed to turn Comet’s fortunes around, and will now stand to receive a payout from the sale of remaining stock and assets.

The British Property Federation say Comet’s collapse is one of the largest retailer crash stories since Woolworths in 2008.

Liz Peace, chief executive of the British Property Federation, said: “It is Comet’s staff and unsecured creditors, such as landlords, who are now set to lose out, while OpCapita seemingly takes its money back.

“It seems to be a real lottery as to who emerges as a winner or loser and the relative merit of claims against the remaining assets appear to be largely ignored. This injustice further underlines the need for a wide-ranging review of the insolvency regime.”

Comet’s collapse will cost almost 7,000 jobs.

This was posted in Bdaily's Members' News section by Tom Keighley .