UK electrical retailer Comet has been sold for just £2 to a private equity firm, in the same week that US firm Best Buy announced it is to close all of its UK stores to focus on smaller shops.
UK electricals retailers have come under increasing pressure as consumers cut back on discretionary spending, while also struggling with increasing competition from supermarket chains and Internet retailers.
Comet’s new owners are Hailey Holdings and Hailey Acquisitions, a VC firm backed by John von Spreckelsen, the former executive chairman of Somerfield.
OpCapita is paying a nominal sum of £1 for Comet and another £1 for Triptych Insurance, which provides warranties for Comet’s goods.
The reason the holding company is called Hailey rather than Halley (the correct spelling of Halley’s Comet) is that another company has already been registered as Halley, said a spokesperson for OpCapita.
£50m will be invested in Hailey and Kesa will retain liability for Comet’s defined benefit pension scheme, which had a deficit of €45.9m (£39.3m) as of April 30, according to the company.
Best Buy leaves UK
On Monday, Carphone Warehouse said it was ending its joint venture with US electricals retailer Best Buy in the UK, as it struggled to turn a profit.
Best Buy is now closing its 11 U.K. big box stores after Christmas, part of a broader reshaping of its strategy with partner Carphone Warehouse Group.
Best Buy will still have a 50 per cent stake in Carphone’s high street empire in the UK and Europe.
New smaller stores will focus on iPad and smartphone users with hi-tech kit. Best Buy now has the right to buy Carphone out entirely in 2015.
Carphone is now selling its stake in a US mobile phone venture set up with Best Buy for £838m.
