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Comet owner considers sell-off as sales disappoint
Originally posted by 5corpio
The owner of Comet signalled further upheaval on the high street after admitting it was examining its options for the loss-making chain.
Kesa Electricals is working on a plan to revive Comet's fortunes but at the same time said it is considering its "strategic alternatives", which it is thought could include a sale of the 249-store business.
The announcement, which will heighten speculation that electricals megastore chain Best Buy may look to buy Comet, comes a month after another high street stalwart, Mothercare, said it was planning to close 110 stores to focus on out-of-town sites.
Kesa – the owner of the Darty chain in France – posted annual results showing Comet made a loss of £8.9m in the year to 30 April. Total sales fell 6.8% to £1.54bn – down 7.7% on a like-for-like basis.
It added that trading conditions remained tough across the group, with sales below expectations in the early part of the new financial year. This is in line with similar downbeat comments from rivals such as the Carphone Warehouse brand Best Buy and catalogue retailer Argos.
Kesa said it was taking action to improve Comet's performance through store refits and initiatives such as dedicated areas for accessories and a refreshed
Kesa Electricals is working on a plan to revive Comet's fortunes but at the same time said it is considering its "strategic alternatives", which it is thought could include a sale of the 249-store business.
The announcement, which will heighten speculation that electricals megastore chain Best Buy may look to buy Comet, comes a month after another high street stalwart, Mothercare, said it was planning to close 110 stores to focus on out-of-town sites.
Kesa – the owner of the Darty chain in France – posted annual results showing Comet made a loss of £8.9m in the year to 30 April. Total sales fell 6.8% to £1.54bn – down 7.7% on a like-for-like basis.
It added that trading conditions remained tough across the group, with sales below expectations in the early part of the new financial year. This is in line with similar downbeat comments from rivals such as the Carphone Warehouse brand Best Buy and catalogue retailer Argos.
Kesa said it was taking action to improve Comet's performance through store refits and initiatives such as dedicated areas for accessories and a refreshed
More on this story: Comet owner considers sell-off as sales disappoint | Business | guardian.co.uk