Comet liquidator sues French retailer for £115m

3414
Comet Fnac Darty
Fnac Darty sold the electronics retailer for £2 a year before its collapse in 2012
// Comet liquidator FRP Advisory taking action against French retailer Fnac Darty
// Following Comet’s demise in 2012, more than 6000 jobs were lost
// FRP Advisory said that the payment to Fnac Darty broke insolvency rules because it was paid ahead of other Comet creditors

Comet’s liquidator FRP Advisory is suing French retailer Fnac Darty for £115 million.

Fnac Darty sold the electronics retailer for £2 a year before its collapse in 2012, but received £115 million as part of a financing deal with its new owners, the Financial Times reported.

Following Comet’s demise, more than 6000 jobs were lost and the retailer was left with a £44 million bill to taxpayers.


READ MORE: Comet administrator Deloitte faces £1m fine


FRP Advisory said that the payment to Fnac Darty broke insolvency rules because it was paid ahead of other Comet creditors.

The action is being taken in order to win money for Comet creditors.

The biggest creditor is Hailey Acquisitions – which is owed £186 million. It bought Comet from Fnac Darty, then Kesa Electricals, in 2011.

Hailey has so far received £60 million following Comet’s liquidation.

Moreover, the news follows Comet’s administrator Deloitte being hit with a fine of £1 million by the accountancy watchdog last week.

The Big 4 accountancy firm and two of its partners who oversaw Comet’s administration in 2012, have agreed to pay the fine.

The ICAEW, which can sanction accountants, reportedly found that Deloitte did not take adequate steps to ensure that its previous work advising Comet’s owners did not present a conflict of interest.

Click here to sign up to Retail Gazette‘s free daily email newsletter

2 COMMENTS

LEAVE A REPLY

Please enter your comment!
Please enter your name here