The London Evening Standard reports this afternoon that it has emerged today that Kesa Electricals’ attempt to sell off its Comet chain look increasingly likely to be scrapped.
Talks with potential buyers, including Hilco that is a buyout group which specialises in doing deals for stricken businesses and turning them around and private equity house OpCapita appear to be coming to a halt.
Kesa chief executive Bob Darke could now be left with the prospect of having to turn around the loss-making business in-house as the only option remaining.
Mr Darke said at the company’s results announcement in June that the group would run a sale process alongside an in-house turnaround plan and choose the most attractive option.
Rival bidders GA Europe, another restructuring specialist, and investment group Weight Partners have been reported to have now pulled out of the bidding completely.
Offers from possible buyers have all been conditional with a major sticking point being Comet’s pension liabilities. The long-standing leases are also an issue as many of the stores are likely to be closed whoever buys them.