Comet is to shut 17 stores after making a £9m loss in retail profit for the year to April 30, 2011.
The struggling electronics retailer also saw revenue fall 6.8% to £1,538m, compared with the same period last year, after losing a small amount of market share. On a like-for-like basis, sales fell 7.7%.
Parent company Kesa Electricals said several actions were taken during the year to improve Comet's performance, including introducing dedicated accessory areas into 190 stores and updating small kitchen appliances displays in 100 stores. 44 stores were refitted while new point of sales and staff uniforms were launched in September.
The company says these changes have provided a platform to "develop and accelerate" plans to turn Comet around. However, in the short term, 17 stores will be closed in the next three years, with nine expected to close this year.
The retailer has also consolidated its 14 regional service centres to just two sites, reduced its warehouse network from three to two and cut head office staff.
Kesa chairman David Newlands said: "We have a strong turnaround plan for Comet to restore its profitability in the medium term and in parallel we are examining strategic alternatives to ensure the best overall value for shareholders."
The company has not commented on
speculation that it is under pressure from key shareholder Knight Vinke to sell the chain.
The Kesa Group saw retail profit decline 2.7% to €107m for the period, while revenue went up 2.2% to €5,917m. However, this equated to a 1.8% decline on a like-for-like basis.
The company reported improved performances at overseas chains Darty France and Vanden Borre in Belgium.
Kesa chief executive Thierry Falque-Pierrotin said: "We anticipate all our markets will be challenging for the current financial year... However from improved market positions in most of our markets, further cost measures in all countries with specific restructuring at Comet, BCC and Darty Spain and the strength of our cash generation and balance sheet, we are well prepared for these conditions."