Архив рубрики: Comet

Wireless operator

Mr. Sharma said that a Sprint merger with SoftBank would most likely be better for consumers than one with Dish. The two carriers combined would have more buying power to negotiate with manufacturers like Apple or Samsung to buy large quantities of phones at lower prices.

Because the phones would be cheaper for Sprint, the carrier could charge customers less for access its network to make up for the costs of the phones, he said.

Amid the fight for Sprint is a tug of war for Clearwire, another wireless operator of which Sprint is the majority owner. Sprint has signaled interest in taking over the company entirely with the cash infusion from SoftBank, but Dish in January made an unsolicited bid of $2.2 billion for a portion of the company.

And on the heels of Monday’s news, Verizon offered $1.5 billion to buy spectrum from Clearwire, according to a person briefed on the company’s plans, who was not authorized to speak publicly because the plans were not yet official.

If Dish Networks succeeded in a takeover of Sprint, it would be in a position to acquire Clearwire more quickly than Sprint/SoftBank, because a foreign company that tries to buy more than 25 percent of a telecom company must undergo regulatory review.

Barclays is advising Dish Network on its proposed bid. Deutsche Bank, the Raine Group and Mizuho Securities are advising SoftBank. Citigroup, Rothschild and UBS are advising Sprint Nextel.


Comet collapse: Deloitte blames internet and lack of first-time home buyers.

Comet has officially collapsed into administration, putting more than 6,000 jobs at risk. Here, Deloitte, which has taken over the running of the business, explains what happened.
Neville Kahn, Nick Edwards and Chris Farrington of Deloitte, the business advisory firm, have today been appointed Joint Administrators to Comet, the electrical retailer.

Comet, which is headquartered in Rickmansworth, operates out of 236 stores across the UK, and employs 6,611 people – a full time equivalent workforce of 4,682 employees.

Like many other retailers, Comet has been hit hard by the uncertain economic environment, slow consumer spending and lack of consumer confidence. The electrical retail sector has been particularly challenging, with fewer people buying big ticket items, and fewer first time property buyers who have historically been an important market for the Company.

Despite significant investment in the business and the efforts of the experienced management team, Comet has struggled to compete with online retailers which have far lower overhead costs and can offer cheaper products.

Against a backdrop of continuing weak sales, and speculation that Comet was being approached by prospective buyers, suppliers have been reluctant to provide credit terms, which has had a negative effect on cash flow. The inability to obtain supplier credit for the peak Christmas trading period, means that the Company had no realistic prospect of raising further capital to build up sufficient stock to allow it to continue trading.
As a consequence of all these factors, the directors of Comet had no choice but to seek Administration.

Neville Kahn, Joint Administrator and restructuring services partner at Deloitte, commented: “Comet has been battling the changing landscape of the electrical retail sector for many years. It has become increasingly difficult for it to compete with online retailers which don’t face the same overheads such as store rents and business rates.

“Our immediate priorities are to stabilise the business, fully assess its financial position, and begin an urgent process to seek a suitable buyer which would also preserve jobs.

“In the meantime, all stores will continue to trade and all employees will continue to be paid. We appreciate the cooperation and support from the management, staff, customers, landlords and suppliers at what is clearly a very difficult time.”

Extended warranties previously purchased are unaffected by the administration and remain valid.