Electrical good retailers Comet is to be sold to a private equity firm for just £2.
Anglo-French firm Kesa, which owns Comet, is selling it to a group of companies under the name "Hailey" who are advised by retailer turnaround specialists OpCapita.
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"In reaching its view the Board took into account the ongoing negative impact of Comet on the financial position of the group, the significant challenge involved in achieving an acceptable level of profitability at Comet over the long term given the specific competitive nature of the UK market, and the substantial costs involved if the turnaround plan proved to be unsuccessful," Kesa said.
Kesa will put £50m into the new holding company, and will retain liability for the Comet employees' final salary pension scheme.
Kesa said it would benefit from any subsequent onward sale of the chain, but only if the resale price was greater than £70m.
The deal is subject to shareholders approval. Shares in Kesa fell almost 4% following the announcement but it was unclear whether this was as a result of the deal or because of ongoing crisis in the eurozone.
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