Comet administrators begin cutting price of unsold stock after accountants from Deloitte took charge of loss-making retailer

The administrators of Comet have begun slashing the price of unsold stock as they gear up to press the button on a full blown fire sale.

With the retailer’s website promising the Comet sale is “starting soon” it was already offering a 10% discount in stores on Wednesday although the promotion did not include must-have gadgets such as tablets.

Accountants from Deloitte took charge of the loss-making retailer the end of last week after its US backers refused to provide additional funds to keep it going. The retailer, which has more than 6,600 staff and 236 stores, had also lost the support of its suppliers, since being cut adrift by its stock exchange listed owner Darty at the start of this year.

With the prospect of huge job losses on the horizon, the collapse of Comet has sparked controversy. The retailer was bought by OpCapita for a token £2 but it came with a £50m dowry and industry insiders predict the turnaround firm, which is run by former investment banker Henry Jackson, will still make a multi-million pound profit from the deal.

With no buyer expected to emerge for the whole chain there is a growing expectation that it will broken up with its best stores cherry-picked by rivals such as Dixons and Staples. Retail insiders have suggested that some stores could begin closing as early as next week. But with many suppliers asking for payment up front, Comet’s stock reserves are already depleted. It held roughly £180m of stock when it was acquired by OpCapita, however, this was reduced to £120m as products sold were not replaced and it is not thought to have been able to source new stock in recent weeks. A Deloitte spokesman would only confirm that sale activity was getting under way on Thursday.

The failure of Comet, the UK’s second largest electricals specialist, is expected to result in a sales boost for market leader Dixons and on Wednesday its chief executive Sebastian James said it would offer a lifeline to thousands of Comet workers who are facing redundancy. The owner of PC World and Currys has delayed its normal Christmas recruitment drive, when it drafts in an additional 3,000 seasonal shop and warehouse staff, to give Comet staff the opportunity to apply for the temporary positions. Dixons said more than 500 Comet staff had already made enquiries with many walking into its stores still dressed in their Comet uniforms. “For now the jobs are temporary, but we are hoping that a good number will become permanent,” said a spokesman.

The high street electricals market in the UK has come under huge pressure as cash-strapped shoppers put off purchases of big-ticket items such as TVs and large appliances. In the wake of Friday’s formal appointment, Deloitte stopped stores from accepting gift vouchers citing the need to collate the “quantity, value and nature of gift cards in circulation”. That decision was reversed on Tuesday after it emerged that disabled children, who had received vouchers from the Family Fund charity, were among those being penalised.