16 November 2012 Last updated at 19:00 ET
The insolvent electrical chain Comet is preparing to close about 30 stores by the end of November, the BBC has learned.
Comet appointed administrators earlier this month, putting 6,611 jobs at risk.
The remaining 206 or so outlets are expected to continue trading over the Christmas period, but their future remains deeply uncertain.
The first of the store closures will begin next week, the Financial Times reported earlier.
The administrators, Deloitte, has already announced 330 job losses at Comet’s headquarters and among administrative staff and there have also been reports that it is preparing to close down the retailer’s home delivery operation.
Comet’s demise was one of the biggest High Street casualties of recent years.
The electricals chain had been hit hard by the drop in consumer spending in the UK since 2008, which has been particularly acute in the case of the big items that Comet sells.
Many of Comet’s customers are first-time home-buyers, according to Deloitte, meaning that business has been hurt by the much tighter conditions in the UK mortgage market.
According to Deloitte, the company had been pushed to the brink by a cash drain caused by suppliers who had been unwilling to provide credit to Comet. Without such credit, the chain was unable to stock-up for Christmas.
Deloitte recently allowed gift vouchers bought by members of the public to be used at stores, days after suspending them, after taking time to “assess the financial position of the company”.
Rival Dixons has offered Christmas jobs to hundreds of Comet staff who face redundancy.
BBC News – Business
Retailer Comet to close 30 stores
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Retailer Comet to close 30 stores
