Kesa to update on future of struggling Comet unit

 
Steve Dinneen
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KESA Electricals will flesh out its plans for its struggling Comet business when it unveils what are expected to be a woeful set of results on Thursday, sources close to the company told City A.M.

The group had hoped to auction off the business but has seen its plans dented by a string of poor results and concerns over its pension pot and property commitments.

It is understood talks with the two remaining interested parties ended after they failed to agree on the size of a potential “dowry” to be paid by Kesa to help mitigate against the costs.

If a sale of the business cannot be agreed it will push ahead with plans to restructure. It is thought a final decision will be reached by next month at the latest.

Kesa chairman David Newlands last month spoke of the size of the task facing the business, branding its recent results “neither satisfactory nor acceptable”.

He said: “Changes to management have been made and a strong turnaround plan to restore profitability in the medium term is being prosecuted vigorously. We believe that Comet is well placed to carve a leading position.”