Comet

News headline Comet going into administration, did I hear correct?
Regards
David

David wrote:
News headline Comet going into administration, did I hear correct?

Google says no, although it says a lot of the media say they are *close*
to it. E.G. http://www.bbc.co.uk/news/business-20164561

On Thu, 01 Nov 2012 09:10:53 +0000, David Woolley
wrote:

David wrote:
News headline Comet going into administration, did I hear correct?

Google says no, although it says a lot of the media say they are *close*
to it. E.G. http://www.bbc.co.uk/news/business-20164561

I think it is now a self-fulfilling prophesy. Once the suppliers hear
Comet is about to go into administration they will refuse to supply.

On Thu, 01 Nov 2012 09:10:53 +0000, David Woolley
wrote:

David wrote:
News headline Comet going into administration, did I hear correct?

Google says no, although it says a lot of the media say they are *close*
to it. E.G. http://www.bbc.co.uk/news/business-20164561

Comet is owned by the private equity firm OpCapita.
It's teetering on the brink:
http://www.dailymail.co.uk/news/arti...g-balance.html

Troubled electrical chain Comet could call in administrators today
after struggling to compete with rivals - a move which may threaten
6,000 jobs.

The company, which has struggled to compete against fierce
competition from the supermarkets and cut-price websites, is tipped
to appoint accountant Deloitte as administrator, the Mail can
disclose.

Private equity firm OpCapita, which bought the chain of 240 stores
for £2 less than ten months ago, has struggled with cashflow issues.

During October it was forced to start sale talks with buyers after
the business model changed when suppliers could not find insurers
willing to cover goods delivered should Comet default on its bills.

The environment for credit insurance has since become tougher and it
has been withdrawn in most cases, forcing OpCapita to pay for all
its stock upfront.
....
OpCapita boss Henry Jackson will take a decision on the solvency of
the business in the coming days and may call in Deloitte as early as
today.


--
Peter Duncanson
(in uk.tech.digital-tv)

In article ,
David wrote:
News headline Comet going into administration, did I hear correct?
Regards
David

It's hardly news - they've been in trouble for ages.

--
*Cover me. I'm changing lanes.

Dave Plowman London SW
To e-mail, change noise into sound.

On Thu, 01 Nov 2012 10:55:19 +0000, Peter Duncanson
wrote:

On Thu, 01 Nov 2012 09:10:53 +0000, David Woolley
wrote:

David wrote:
News headline Comet going into administration, did I hear correct?

Google says no, although it says a lot of the media say they are *close*
to it. E.G. http://www.bbc.co.uk/news/business-20164561

Comet is owned by the private equity firm OpCapita.
It's teetering on the brink:
http://www.dailymail.co.uk/news/arti...g-balance.html

Troubled electrical chain Comet could call in administrators today
after struggling to compete with rivals - a move which may threaten
6,000 jobs.

The company, which has struggled to compete against fierce
competition from the supermarkets and cut-price websites, is tipped
to appoint accountant Deloitte as administrator, the Mail can
disclose.

Private equity firm OpCapita, which bought the chain of 240 stores
for £2 less than ten months ago, has struggled with cashflow issues.

During October it was forced to start sale talks with buyers after
the business model changed when suppliers could not find insurers
willing to cover goods delivered should Comet default on its bills.

The environment for credit insurance has since become tougher and it
has been withdrawn in most cases, forcing OpCapita to pay for all
its stock upfront.
....
OpCapita boss Henry Jackson will take a decision on the solvency of
the business in the coming days and may call in Deloitte as early as
today.

I wondered. We were there a couple of weeks ago and there was very
limited stock. They wanted us to pay for two items in advance then
collect the following week. Fortunately, we have now collected the
items (my birthday and Christmas presents).

On Thu, 01 Nov 2012 10:58:47 +0000 (GMT), "Dave Plowman (News)"
wrote:

In article ,
David wrote:
News headline Comet going into administration, did I hear correct?
Regards
David

It's hardly news - they've been in trouble for ages.

Pedant mode Change of legal status. There is a big difference
between 'being in trouble' and the owners handing over management to
administrators. Pedant mode off

On Thu, 01 Nov 2012 10:07:09 +0000, Scott
wrote:

On Thu, 01 Nov 2012 09:10:53 +0000, David Woolley
wrote:

David wrote:
News headline Comet going into administration, did I hear correct?

Google says no, although it says a lot of the media say they are *close*
to it. E.G. http://www.bbc.co.uk/news/business-20164561

I think it is now a self-fulfilling prophesy. Once the suppliers hear
Comet is about to go into administration they will refuse to supply.

According to the Daily Mail report I quoted Comet has had to pay up
front for stock which is part of the reason they are strapped for cash.


--
Peter Duncanson
(in uk.tech.digital-tv)

On Thu, 01 Nov 2012 11:42:39 +0000, Peter Duncanson
wrote:

On Thu, 01 Nov 2012 10:07:09 +0000, Scott
wrote:

On Thu, 01 Nov 2012 09:10:53 +0000, David Woolley
wrote:

David wrote:
News headline Comet going into administration, did I hear correct?

Google says no, although it says a lot of the media say they are *close*
to it. E.G. http://www.bbc.co.uk/news/business-20164561

I think it is now a self-fulfilling prophesy. Once the suppliers hear
Comet is about to go into administration they will refuse to supply.

According to the Daily Mail report I quoted Comet has had to pay up
front for stock which is part of the reason they are strapped for cash.

If they don't have the stock they won't make sales. If they don't
make sales they won't have money to pay for stock. Probably
unstoppable now.

On Thu, 01 Nov 2012 12:55:26 +0100, Martin wrote:

On Thu, 01 Nov 2012 11:54:02 +0000, Scott
wrote:

On Thu, 01 Nov 2012 11:42:39 +0000, Peter Duncanson
wrote:

On Thu, 01 Nov 2012 10:07:09 +0000, Scott
wrote:

On Thu, 01 Nov 2012 09:10:53 +0000, David Woolley
wrote:

David wrote:
News headline Comet going into administration, did I hear correct?

Google says no, although it says a lot of the media say they are *close*
to it. E.G. http://www.bbc.co.uk/news/business-20164561

I think it is now a self-fulfilling prophesy. Once the suppliers hear
Comet is about to go into administration they will refuse to supply.

According to the Daily Mail report I quoted Comet has had to pay up
front for stock which is part of the reason they are strapped for cash.

If they don't have the stock they won't make sales. If they don't
make sales they won't have money to pay for stock. Probably
unstoppable now.

They don't have stock because they don't have insurance to cover the
suppliers in the event of going tits up.

And they don't have insurance because they are assessed as too high
risk. And they are high risk because ... (full circle).