Comet on the brink of administration

Update: Comet says it will go into administration next week

Comet, one of the UK's best known names on the high street, appears to be heading for administration.

The UK's second biggest high street electrical chain after the Dixon's group has 240 stores throughout the country and over 6,000 jobs are at risk. But the chain has been struggling in recent years as the success of supermarkets and online retailers such as Amazon selling electrical and electronic gadgets have squeezed its profit margins.

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Although neither Deloitte or Comet is responding to the reports, "industry sources" said the company's credit lines to suppliers had been cut forcing it to pay for goods upfront, according to the Guardian.

Comet has had a tough time over the last two years. Originally part of the Kingfisher Group, it demerged from this organisation in 2003. Last year Kesa Electricals, its Anglo French parent company, sold the company for £2 to a holding company Hailey which was advised by OpCapita.

At the time it managed to attract £80m funding and a £40m loan so it was able to continue trading and customers' warranties had been secured with additional funding from Kesa. OpCapita even drafted in ex Dixon's boss John Clare.

However, even this doesn't appear to have helped save the struggling chain.