Loss-making electricals chain Comet has been sold to private investment firm OpCapita for a token £2, just days after Best Buy pulled the plug on its UK operation.
Parent company Kesa Electricals also agreed to invest £50m into the business, which suffered an 18.6% decline in like-for-like revenue in the first half of its current financial year.

The added investment will entitle Kesa to a share of the proceeds of any subsequent sale of Comet by OpCapita, but only if those proceeds exceed £70m.

OpCapita has put £30m into the business, and confirmed plans to keep Comet trading as a going concern for at least 18 months after the sale is completed.

Kesa chairman David Newlands commented: "In June 2011, the board decided to explore strategic alternatives for Comet in parallel with implementing the turnaround plan on restoring profitability at Comet over the medium term.

"Having concluded the review of its strategic alternatives, the board believes that a disposal on the terms agreed with the purchasers is in the best interests of ordinary shareholders and delivers a more certain outcome than continuing with the turnaround plan. Whilst good progress has been made against the turnaround plan's strategic objectives, in reaching its view the board took into account the ongoing negative impact of Comet on the financial position of the group, the significant challenge involved in achieving an acceptable level of profitability at Comet over the long term given the specific competitive nature of the UK market, and the substantial costs involved if the turnaround plan proved to be unsuccessful."

In the year to April 2011, Kesa took several actions to improve Comet's performance, including refitting 44 stores and consolidating its 14 regional service centres to just two sites.

The sale to OpCapita is expected to complete on February 3, 2012.