The firm, which has about 240 stores across the UK, today confirmed plans for it to be placed into administration next week, marking one of the UK’s biggest retail failures in recent years.
Staff were informed of plans this morning and restructuring specialist Deloitte has been lined up to handle the administration.
Comet said it was ‘urgently working’ on plans to secure the company’s future and it is expected administrators will seek a buyer for the business.
The firm has two stores in Sheffield, off Queens Road, Lowfield and Drake House Retail Park, Drakehouse, as well as branches in Doncaster, Rotherham, Barnsley and Worksop.
News of the planned administration follows just months after Comet was taken over by investment firm OpCapita, which bought the chain for a nominal £2 in February.
It is thought OpCapita had been unable to secure the trade credit insurance needed to safeguard suppliers.
Comet’s collapse is one of the biggest since the demise of Woolworths in 2008 and comes a month after the failure of JJB Sports. Other recent casualties have included Clinton Cards, Blacks Leisure, Game and Peacocks.