Comet is for sale, cheap

UK ELECTRONICS STORE Comet is up for sale by its parent company for just £2.

We learned this week that Best Buy is exiting the country, and has finished its deal with the Carphone Warehouse locally. Now Kesa Electronics has announced that it wants to rid itself of its off-high street electronics sheds and sell the business to a private equity firm.

The sale is subject to approval of the disposal by the company's ordinary shareholders. "In June 2011, the Board decided to explore strategic alternatives for Comet in parallel with implementing the turnaround plan focused on restoring profitability at Comet over the medium term," said David Newlands, chairman of Kesa Electricals said in a statement.

"Having concluded the review of its strategic alternatives, the Board believes that a disposal on the terms agreed with the Purchasers is in the best interests of Ordinary Shareholders and delivers a more certain outcome than continuing with the turnaround plan."

Newlands said that Kesa had made some progress in its plans to turnaround the business, and tackle the "ongoing negative impact of Comet" on the wider firm, but had reached the end of its trail, or comet tail.

"The significant challenge involved in achieving an acceptable level of profitability at Comet over the long term given the specific competitive nature of the UK market; and the substantial costs involved if the turnaround plan proved to be unsuccessful," he added.

Kesa Electronics will invest £50m in the holding company, called Hailey Holdings, subject to the purchase approval, and will retain responsibility for its pension scheme. µ