ELECTRICALS chain Comet has been placed into administration.

But its stores will remain open and its 6,600 staff will continue to be paid, administrators Deloitte said.

The company employs about 80 people at Leeds Road in Huddersfield and Greenmount Retail Park in Halifax.

Meanwhile, the boss of a hugely successful online retail firm in Huddersfield blamed the demise of Comet on its failure to understand how e-commerce works.

Nick Glynne, managing director of Buy it Direct, said: "Everyone is saying it is an indication of how bad the recession is – but to me it is nothing to do with that.

"The real reason is that Comet just don’t get the internet. Viewing a website and ordering online is only 20% of the story – the rest is understanding that e-commerce is completely different from retailing. The whole world has moved on."

Mr Glynne said the demise of Comet was a warning sign to all retailers.

"Unless they properly engage with e-commerce and realise that it is different to trading in a shop, the writing will be on the wall."

Deloitte said it was launching an "urgent" search for a buyer to protect jobs at Comet, which has 236 stores.

Customers with outstanding orders and those with gift cards and vouchers have been told trade is continuing as normal and that the group intends to fulfil deliveries of goods which have been paid for.

Extended warranties previously purchased are unaffected by the administration and remain valid, added Deloitte.

The collapse of Comet, which had planned to be placed into administration next week, marks one of the biggest high street casualties since the demise of Woolworths in 2008 and comes a month after the failure of JJB Sports.