Comet, the electrical retail store went into administration today.
There are a number of factors which contributed to this......
Many we hear about every day, in relation to other businesses which have suffered similarly.
The problem is the press and media are reporting a one sided explanation of the circumstances. The point of view which has been portrayed by the executives and may be financiers involved with these companies. This may be of a view that those involved may want to portray....................
In February 2012, Comet was bought by private equity company, Hailey Holdings & Hailey Acquisitions in tandem with advisory private equity company OpCapita LLP for a token £2 ($3.23).
(You should note that;
Hailey Acquisitions was formed as recently as 2nd November 2011 and registered at Companies House in the U.K. ! There are no other companies under it's control other than Comet. The name may be a coincidence or may be not.)
The buyers received a £63 Million dowry payment from the seller. A dowry is basically a gift. Some may call it a bribe. This kind of thing should not need to go on. If this kind of thing went on in the stock markets it would be illegal. This is because it would be perceived as manipulation of the markets. If you don't think a share is worth buying on it's face value, then you should not be encouraged to buy that share because the seller has slipped a few notes into your back pocket. In this particular episode, the amount going into the back pocket is a cool £63 Million ....Instead of a share in a company, it's a whole company... .............. It wouldn't be quite so bad if the money belonged to the seller, but it will be investors money that will be used for this gift incentive. ....................... Those investors will obviously suffer as a result of this payment. The executives of Kesa Electricals, the business that owned Comet will however not be affected by the loss. In fact they will be charging their investors for their services, regardless of how badly their performance may be.
OpCapita is run by ex banker Henry Jackson. OpCapita has taken over just four businesses since it was formed including Comet. Of the four, two have gone into administration. The other company to go into administration was one of Britain's higher profile companies, MFI.
Although Hailey Holdings and OpCapita received the £63 Million dowry payment, they will not need to invest all of this in Comet as their investors are other investment companies. Their main investment is led by Grey Bull Capital, an investment company based in London. Also investing were Elliot Advisers from the United States.....................................................
For the benefit of outsiders to this business, some of the things to note are as follows:-
Hailey Acquisitions was formed in November 2011. Just three months later, it was taking over one of the U.K.'s biggest retailers! ...................................If you have started, and currently run your own business, this will be difficult to comprehend. ................................There is no sign of building up a reputation and a customer base............So how is it then that a business that has been formed so recently take over a high Street retailer of such importance to the U.K? ....... ................................... ..............................................................................to be continued....................
There are a number of factors which contributed to this......
The problem is the press and media are reporting a one sided explanation of the circumstances. The point of view which has been portrayed by the executives and may be financiers involved with these companies. This may be of a view that those involved may want to portray....................
In February 2012, Comet was bought by private equity company, Hailey Holdings & Hailey Acquisitions in tandem with advisory private equity company OpCapita LLP for a token £2 ($3.23).
(You should note that;
Hailey Acquisitions was formed as recently as 2nd November 2011 and registered at Companies House in the U.K. ! There are no other companies under it's control other than Comet. The name may be a coincidence or may be not.)
The buyers received a £63 Million dowry payment from the seller. A dowry is basically a gift. Some may call it a bribe. This kind of thing should not need to go on. If this kind of thing went on in the stock markets it would be illegal. This is because it would be perceived as manipulation of the markets. If you don't think a share is worth buying on it's face value, then you should not be encouraged to buy that share because the seller has slipped a few notes into your back pocket. In this particular episode, the amount going into the back pocket is a cool £63 Million ....Instead of a share in a company, it's a whole company... .............. It wouldn't be quite so bad if the money belonged to the seller, but it will be investors money that will be used for this gift incentive. ....................... Those investors will obviously suffer as a result of this payment. The executives of Kesa Electricals, the business that owned Comet will however not be affected by the loss. In fact they will be charging their investors for their services, regardless of how badly their performance may be.
OpCapita is run by ex banker Henry Jackson. OpCapita has taken over just four businesses since it was formed including Comet. Of the four, two have gone into administration. The other company to go into administration was one of Britain's higher profile companies, MFI.
Although Hailey Holdings and OpCapita received the £63 Million dowry payment, they will not need to invest all of this in Comet as their investors are other investment companies. Their main investment is led by Grey Bull Capital, an investment company based in London. Also investing were Elliot Advisers from the United States.....................................................
For the benefit of outsiders to this business, some of the things to note are as follows:-
Hailey Acquisitions was formed in November 2011. Just three months later, it was taking over one of the U.K.'s biggest retailers! ...................................If you have started, and currently run your own business, this will be difficult to comprehend. ................................There is no sign of building up a reputation and a customer base............So how is it then that a business that has been formed so recently take over a high Street retailer of such importance to the U.K? ....... ................................... ..............................................................................to be continued....................
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