Taxpayers’ £50m bill over Comet collapse

A report to creditors is today expected to show HM Revenue & Customs will recoup none of the £26.1m it is owed.

The report is also likely to indicate that insufficient funds have been raised from winding down the retailer in order to cover £24m in redundancy payments owed to more than 6,000 staff. This means the Government will probably have to step in and ensure workers receive their payments.

However, secured creditors are expected to receive 34p in the £1, according to reports.

All Comet stores are expected to close by tomorrow after administrator Deloitte failed to find a buyer for the group.

The 236-store chain plunged into administration early last month, after about a year in the hands of private equity firm OpCapita.

The report is expected to show OpCapita’s acquisition vehicle Hailey Acquisitions Ltd (HAL), which bought Comet for a nominal £2 in November 2011, will receive £49.7m as its loans are secured. However, HAL was owed £145m at the time of Comet’s collapse, meaning a £95.3m shortfall for its private equity backers.

Deloitte has been closing Comet stores in recent weeks as it offloads stock, and said “all remaining stores will close by Tuesday”.

A spokesman added: “Discussions continue with a small number of interested parties.” The brand is expected to be sold to an online retailer.

Comet was forced into administration by weak high street trading conditions, lack of first-time buyers, competition from online rivals and its inability to secure the trade credit insurance needed to safeguard suppliers.

The chain, founded in Hull in 1933, had 248 stores and about 10,000 staff when OpCapita bought it from Kesa.