The Express reported at the weekend that bids for 249-store electricals chain Comet are due this Wednesday signalling a likley break-up of parent group Kesa.
It is reported that Kesa appointed Bank of America Merrill Lynch earlier this year to examine options for Comet, which suffered annual losses of nearly £9 million last year compared to a profit of £11.5 million the year before.
Potential bidders are thought to include restructuring companies Hilco and GA Europe. Interest from other retailers is thought to be almost non-existant which, given the slews of bad news about the UK high streets will hardly come as any surprise.
Dixons Retail has publicly ruled out a bid for its rival as many of their stores are in similar locations and it has suffered from the consumer downturn itself. Asides from which if Dixons were to buy Comet any deal would likely come under the scrutiny of the authorities, notably the MMC.
A sale of Comet would leave Kesa free to concentrate on its profitable French business Darty and most probably leave the London Stock Exchange to list in Paris.
Were Comet to fall into the hands of restructuring firms, it is likely that it would be broken up and sold off, Hilco recently restructured and sold off furniture company Habitat. Which will not bode well for many Comet employees.
Insiders at Kesa refused to comment and insist a sale is just one option for Comet’s future.
Knight Vinke, the investor that has the largest shareholding in UK-listed Kesa, has given its blessing to a sale of Comet providing it is at an acceptable price.