07/09/11
By Karen Moss
Reports indicate that Kesa Electricals have edged closer to putting a ‘For Sale’ sign over Comet, saying that it was looking at "strategic alternatives" for the struggling business.
Best Buy’s future in the UK looks uncertain, sales are plunging at Argos and Dixons' share price is plummeting, leaving the distinct impression that the worst isn’t over for the High Street.
Comet made a loss of £8 million in the last financial year, dragging down results for an otherwise successful company, which includes French electricals retailer Darty.
Chairman David Newlands insists the group has a "strong turnaround plan" for the High Street business. But City analysts believe at least one of Dixons, Best Buy or Comet will have to exit the market altogether for any to survive.
A report that Best Buy could bid for Dixons, however, was dismissed as "unlikely".
Overall, Kesa saw sales rise 2.2 per cent to EUR 5.9 billion. Profit slipped 2.7 per cent to EUR 107 million. Comet trades from 250 stores and employs 10,000 people in the UK.
Dixons unveils its results tomorrow.
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