Dragons' Den's Peter Jones aims to take on struggling Comet

Dragons' Den star Peter Jones has drawn up plans to inject the ailing electricals chain Comet into his online retailing business in partnership with Hilco, the turnaround specialist.

Jones wants to combine loss-making Comet with Expansys, the listed firm in which he has a 43% stake.

Hilco, which has snapped up and restructured ailing retailers as High Street conditions deteriorate, would take a large shareholding in the combined business.

Comet was put up for sale in summer by Kesa, its parent company, after a slump in sales.

Hilco and Jones are bidding against Opcapita, a buyout firm run by Henry Jackson, the ex-MFI owner. Kesa is expected to choose a preferred bidder this week, subject to it providing a dowry of up to £200 million.

Jones is thought to believe Comet should increase floorspace for smartphones, competing with Carphone Warehouse.

Carphone's American partner Best Buy, is considering closing its 11 "big box" stores in Britain.