Troubled high-street electricals chain Comet has gone into administration according to BBC News.
Comet, the UK's second largest electrical specialist, has struggled to make progress as supermarkets and online retailers such as Amazon targeted the cut-throatmarket. It is estimated that Comet had a total loss of £35m in the year.
Industry sources said Comet faced a cash crunch after trade insurers cut credit lines to suppliers, forcing them to ask for payment for goods upfront. 240 stores are expected to close in UK although they are expected to remain open for business in the meantime.
The retailer has been hard hit by the collapse in consumer spending caused by the recession.
Comet's failure would be more bad news for a retail sector that has been hit by a series of collapses this year, including household names such as JJB Sports, Game, Peacocks and Blacks Leisure. Although the brands still survive, the subsequent restructurings have resulted in hundreds of store closures and thousands of job losses.
Last month more than 2,000 jobs were lost at JJB alone after administrators were unable to find a buyer for the stricken sportswear chain.
The spate of collapses has contributed to the blight of empty shops on Britain's high streets, with a recent report from PwC and the Local Data Company calculating an average of 30 store closures a day in July and August.
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