Comet’s liquidator, FRP Advisory, is suing French retailer Fnac Darty for £115m over aspects of the electricals retailer’s collapse.
Fnac Darty formerly owned Comet, which it sold for £2 a year before its demise in 2012. However, Fnac Darty received £115m as part of a financing deal with its new owners, the Financial Times reported.
Comet’s collapse led to the loss of more than 6,000 jobs and a £44m bill to taxpayers. It is alleged by FRP Advisory 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 bought Comet from Fnac Darty, then Kesa Electricals, in 2011. Hailey was owed £186m and is first in line as a secured creditor.
Hailey has so far receved £60m as a result of Comet’s liquidation. Hailey was backed by private investment specialist OpCapita, and was part of a consortium with others such as Elliott Advisers and Greybull Capital.
News of the legal action emerged after it was separately revealed that the Institute of Chartered Accountants in England and Wales is to fine Comet’s administrators, Deloitte and two of its former partners, more than £1m.
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