Comet collapse may cost taxpayer £50m

17 December 2012

When Comet went under, job losses aside, no-one really gave a fig. However, you might be interested in it now because administrators have failed to raise enough money from the sale of the chain's assets to pay off the redundancy bill.

Reports state that Deloitte is set to admit in a report that there haven't been enough funds raised to pay off the £24m redundancy bill for Comet staff. This means that the government will have to step in to honour payments, all of which means that the whole kerfuffle could end up costing the taxpayer somewhere in the region of £50m.

It also looks like unsecured creditors (like HMRC) and Comet giftcard holders aren't going to be getting any pennies back.

Comet are now desperately hoping that the last of their stores can be sold (possibly to TK Maxx, which of course, we're in desperate need of more of).


TOPICS:   High Street News


  • Dick
    Wouldn't it be cheaper and fairer to just put down the ex-Comet staff?
  • Hiren
    Its unfortunate for the high street - and the workers at Coment. Good or Bad service these are still people who some will struggle with the loss of their jobs. By paying TAX in the first place as workers for Comet; as a TAX payer I don't mind that funds are being used to help people who have being tax in the first place...
  • Kevin
    Maybe people would have been happier if they closed down back in February instead when exactly the same thing would have happened but without several months of extra wages?
  • Mr M.
    "Reports state that Deloitte is set to admit in a report that there haven’t been enough funds raised to pay off the £24m redundancy bill for Comet staff." Funds were instead used by Deloitte to fund their extra massive christmas party! I also thought that HMRC pretty much had first dibs on any money after the recievers had claimed the loins share.
  • I n.
    Prepack sell on coming up, along with announcement from the venture capitalist wanker that he made £65 million from the collapse of the business and he wishes the British tax payer a Merry Skint Christmas.
  • Head
    Lol this takes the piss. Maybe the Goverment should claw back all the tax money the big companies squirrel away via tax dodging loopholes to make up for this. Secondly they should stop all the restructuring delay tactic's and just fold not profitable retailers. The venture capitalist always make money out of the situation, yeah they might of bought it for a quid, but they got a golden handshake for their a trouble, which was worth 50-60 million I think.
  • FormerDSGandBestBuyManager
    What did I say?? Careful what you wish for? This should be a broadside to all those who quipped "ah fuck them and let it close down and fuck all the staff"... And and @head - the government cant just 'fold not-profitable retailers' - they have bugger all to do with them.
  • Tom
    £24m redundancy bill cost..taxpayer[sick] £50m I'd love to be their accountants £26m in fees Of course you still get taxed on your redundancy pay so it'll not cost the government the full amount
  • youknowwheretocome
    WTF is dis real? How can the Vulture Capitalist walk away with that much? Surely HMRC need to be talking to him in the first instance. Is this another string to the Starbucks/Google/Amazon bow - at least we're operating HMRC...any tax we pay you is surely a bonus?

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