Comet to disappear from UK high streets?

Tech retailer may be given the heave-ho

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The future of electronics retailer Comet looks uncertain, with reports that its owner Kesa is looking to sell off the brand.

This comes after the company announced that it was looking a 7.7 per cent dip in like-for-like sales this year.

Although Kesa hasn't officially announced its restructuring plans, its shares rose 5.3 per cent with the proposed news.

If Kesa does decide to go ahead with the plan, then Comet could disappear from UK high streets altogether, with rivals Best Buy and Dixons buying up a number of Comet's stores.

Bad to worse

Speaking to the Guardian, analyst Nick Bubb at Arden, said: "Clearly Comet is going from bad to worse at present and it is dragging back the performance of the whole group."

While analyst Andrew Wade, associate director of Equity Research Retail, said that if Comet does go the way of Woolworths, then the move would be a "significant positive" for both Kesa and its main rival Dixons Retail.

Via the Guardian