Comet closes stores as sales slide goes on

Sales keep falling at Comet, forcing the electricals giant owned by Kesa to shut stores and slash costs.

Revenues tumbled 7.7% in the fourth quarter, their third decline in a row, and there are rumours of a private-equity bid. Activist investor Knight Vinke has an 18% stake and will want action soon.

Chief executive Thierry Falque-Pierrotin said: "In the UK, market conditions remained particularly tough and we have accelerated our plans at Comet to reposition the business and reduce our cost base."

French arm Darty is faring much better with like-for-like sales up 5%. As well as closing Comet retail outlets, the company plans to reduce its 14 service centres to just two and shut one of its three warehouses at a cost of £20 million.

That is expected to save up to £10 million a year in overheads but as many as 100 jobs could go by the end of the summer.