Feeds

Tempo customer warranties are worthless (most of them)

Creditors call for investigation

  • alert
  • submit to reddit

Up to half a million customers of Tempo, the bust electrical and computer goods retailer, may be the owners of worthless product warranties.

The warranties have had no insurance backing since 1997 and Tempo put no money aside to cover its obligations, the Sunday Times reports.

Warranty holders will join the queue of unsecured creditors of the company which went into administration in September. All warranties on goods sold since then are backed by insurance.

Trade creditors have called on Price Waterhouse Coopers (PwC), the administrators, to investigate the actions of Tempo management, and whether the company should have continued trading for so long

Neville Kahn, administrator, told the Sunday Times: "There is evidence of a great deal of disquiet about directors' dealings in relation to this and other matters. I have undertaken to investigate."

Tempo is, or was, a 37-strong chain of small warehouse-format stores, based mostly in the South East. The administrators carried on trading the £150m t/o company, intending to mop up pre-Christmas and New Year sales, and to smoke out a buyer. It didn't work out - the last store is shutting this week. ®

Related Story

Tempo in administration

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.