Chaos ensues as fire-sale beckons
High street retailer Comet’s chances of survival look slim as chaos mounts over access to stock.
An angry mob descended on one Comet store following the news that the electronics retailer is to go into administration. Police were called to the Rotherham branch of Comet as a crowd of 30 people turned up to the store to demand assurances that their purchased goods would be delivered, though no arrests were made, according to the Mirror.
Stores across the country were closed this morning to brief staff, opening again at 1pm to allow customers to use gift vouchers on goods.
With Comet’s website taken offline and administrators being called in on Monday, there has been concern over whether orders would be met, according to the Mirror.
It is expected that Comet will open a fire-sale to raise money for the company’s creditors, with suppliers now demanding money up front. A fire-sale will threaten chaos for other retailers as hardware prices are slashed to raise quick cash.
It was announced this week that the retailer would go into administration in the biggest disaster for the high street in years.
Comet’s misfortune, due to a cash squeeze in the build up to Christmas, has benefited high street rival Dixons, however, sending its shares upwards as one of its major competitor prepared for administration.
6,500 jobs are expected to be lost if the retailer does not find a buyer, which is thought to be unlikely.
Comet failed to adapt to the multichannel sales approach that its rivals such as Dixons succeeded, such as increasing its online presence.