Comet in trouble, administration looms for UK retailer
GAME owner OpCapita is facing similar troubles with its Comet retail chain that led to its own buy-out of the videogames high street brand. Reports today claim that the electronics retailer is on the brink of entering administration.
Like with GAME since OpCapita stepped in to save the brand, Comet finds itself in the position where it is under pressure from manufacturers to pay for its stock up front. It is currently trading without credit insurance, so cannot offer consumer electronics firms guarantees that they will get their money after sale if something were to happen to the chain.
What that meant for GAME at the beginning of 2012 was the inability to stock several major games, such as Electronic Art's big titles, including Mass Effect 3.
OpCapita has admitted it has received offers for the company it bought less than a year ago. In June, Comet chairman John Clare - who was brought in from rival Dixons - even said the electronics brand was "climbing out of a hole" after stabilising sales and making approximately 2,000 job cuts.
Now it seems that a further 6,000 jobs may be under threat in the build-up to Christmas.