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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Cable calls for Comet inquiry

The Business Department confirmed that Vince Cable has called an investigation into Comet in a bid to find out why the firm ended up going out of business and the circumstances around the purchase of the company by a private equity firm last year.