By Neal Wallace

Troubled electrical retailer Comet is to be sold by its parent company for £2.

Anglo-French retailer Kesa has announced its plans to offload the brand to a private equity firm, investing a further £50m into the holding company. Kesa will also retain liability for the final salary pension scheme of Comet's employees.

The buyer, a group of companies under the name 'Hailey', advised by turnaround specialists OpCapita, has promised to keep Comet as a going concern for at least 18 months.

David Newlands, chairman of Kesa, said that a plan was drawn up in June to restore profitability at Comet. The company has seen revenues fall by 22 per cent in the last 18 months.

"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," he added.

Comet has 248 stores in the UK and sells a wide range of electrical products.