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Government to meet £23.2m Comet staff payments bill

With insufficient funds raised from the winding down of electrical chain Comet, it will fall to the Government's Redundancy Payments Service to meet £23.2 million of outstanding redundancy pay, accrued holiday pay and pay in lieu of notice.

Comet's last remaining stores will trade for a final time on Tuesday Credit: Andrew Parsons/PA Archive

According to a new Deloitte report, the chain racked up losses of £95 million in the year to April, having seen revenues slump by £200 million on a year earlier.

This was followed by a further £31 million loss in the subsequent five months as credit insurers lost confidence and withdrew support for the business.

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Remaining Comet stores to trade for final time

Electrical chain Comet's remaining stores will trade for the final time tomorrow.

The closure of the final group of 49 stores from the former 235-strong estate comes seven weeks after Deloitte was appointed administrator.

The closure of Comet is the latest high-street casualty Credit: Press Association

Deloitte has so far failed to find a buyer for the company or any of its shops.

In a report published today, it said it remains in talks with a small number of parties including over the sale of internet operations and the brand.

The collapse of the firm, founded in Hull in 1933 and which employed around 6,895 people at the time of its collapse, is one of the biggest high street failures since the demise of Woolworths in 2008.

Thousands to lose jobs as last Comet stores close

The last Comet stores will close on Tuesday Credit: Yui Mok/PA Wire

Deloitte has said the last 50 stores will close for the final time on Tuesday, amid speculation that the brand will be sold to an online retailer and around 20 shops picked up by rivals.

The Sunday Telegraph added that unsecured creditors also included ITV and Google, which are owed £1.2 million and £602,000 respectively for unpaid advertising bills, while holders of £4.7 million of unclaimed Comet gift cards and vouchers are also on the list.

However, an estimated £40 million of payments will be made to suppliers and £2.1 million of holiday and back pay owed to staff will be paid in full.

Comet collapse leaves £50m bill

The government will take a £50m hit from the collapse of Comet, in the form of unpaid tax and redundancy costs, reports the Guardian.

The true extent of Comet's financial picture will be published today Credit: Max Nash/PA Wire

The report will also disclose that unsecured creditors, including HM Revenue & Customs, which is owed £26.1 million, will receive nothing.

Secured creditors, such as the backers of Comet's parent company Hailey Acquisitions, will get payments of just under £50 million.

However, the Sunday Telegraph said this represented a shortfall of £95 million on the amount owed at the time of the collapse of the 236 store chain in early November.

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Taxpayer may face £24m Comet bill over staff payments

The collapse of stricken electrical chain Comet has left the taxpayer looking set to face a bill of at least £24 million, according to The Sunday Times.

Deloitte is set to publish a report on the collapsed retailer Comet on Monday Credit: Andrew Parsons/PA Archive

A report from Comet's administrator, Deloitte, is likely to indicate that insufficient funds have been raised to pay 6,000 members of staff redundancy payments totalling £24 million.

The report suggests the Government will "probably" have to step in to ensure workers receive a payout.

Job losses as Comet distribution centre in Harlow is closed

Today administrators closed Comet’s distribution centre in Harlow, leaving 70 stores to stay open until Comet sells its remaining stock, with 118 more closures planned.

"I've been with the company over 20 years. To be told within 5 days that you've lost your job, it's like a kick in the teeth, it's like losing everything" said one former employee.

ITV News' Consumer Editor Chris Choi reports:

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