Comet Collapse Costs £15M

The BBC reports that administrators have confirmed that the total cost of winding up the collapse of electrical retailer Comet will be £15 million.

The company, which was based in Hull, collapsed last year with the loss of nearly 7,000 jobs and Comet workers had their redundancy money of £23.2m, paid for by the government’s Redundancy Payments Service.

The administrator Deloitte said they were charging “the accepted rate for a complex administration”.

There is no suggestion of any wrongdoing by Deloitte and their fees have been approved by Comet’s bigger creditors.

A Deloitte spokesman told the BBC that: “The overall costs of administration are £15m, which includes third-party consultants. Deloitte’s specific fees are for £8m.

“They reflect the accepted rate for a complex administration in a highly regulated environment.”

After Comet entered into administration it has also left many customers that bought products under the various brand names that the business owned such as Proline, Technolec and others with no warranty and no way to get spare parts for these own brand products. Even some known brands that Comet bought out the warranty for may carry no guarantee in wake of the retailer’s collapse.