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

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
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.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.