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The collapse of Comet has reportedly already cost the taxpayer £50 million in redundancy and unpaid wages. However, even more pain is to come.

On Friday 13, the Employment Tribunal in Leeds held that the Administrators of Comet had failed to adequately consult with the redundant employees, meaning that up to 7,000 employees were entitled to a Protective Award, estimated at a cost of a further £25 million.

As Comet has no money, it will be up to the government to meet this cost. Vince Cable is reported to have promised to investigate the insolvency system in the wake of the collapse. Meanwhile, the Insolvency Service is investigating the case but has yet to publish its findings.

The profession argues that consultation is difficult in an insolvency situation and indeed that Tribunals often take little notice of their representations.

Sarah Rushton (

This is intended for general information only and should not be considered as giving advice in relation to any individual case nor be taken as applying to any particular case. No liability is accepted for any such use of the information.


Standout firm known for its personal insolvency work for clients including private companies, individuals and governmental institutions. Frequently acts for insolvency practitioners, assisting with the realisation of assets, both in the UK and abroad.

Chambers and Partners

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