Scottish jobs under threat as Comet goes into administration

Electricals chain Comet will be placed into administration next week in a move threatening around 700 jobs in Scotland.

The chain employs around 6000 people across the UK in 240 stores. They have 34 shops across Scotland.

The company's demise represents one of the biggest failures on the high street in recent years.

Comet was bought for a nominal £2 by investment firm OpCapita earlier this year but has been unable to secure the trade credit insurance needed to safeguard suppliers.

Restructuring specialist Deloitte has reportedly been lined up for the administration and will begin by attempting to secure buyers for the company's stores.

The move raises the prospect of a pre-Christmas rush for discounted stock as the administrator looks to wind down supplies and raise cash for creditors.

Comet's collapse is one of the biggest since the demise of Woolworths in 2008 and comes a month after the failure of JJB Sports. Other recent casualties have included Clinton Cards, Blacks Leisure, Game and Peacocks.

The high street electricals market in the UK has come under huge pressure as cash-strapped shoppers put off purchases of big-ticket items such as TVs and large appliances and online rivals take a bigger slice of the sector.

America's Best Buy recently pulled the plug on 11 giant electricals stores after failing to make inroads into the UK market.

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