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Comet may close in the UK
StarDelta
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http://www.techradar.com/news/world-of-tech/comet-to-disappear-from-uk-high-streets--956178
If this goes ahead what will happen to the Guarantees if you buy something and they close before it expires.
If this goes ahead what will happen to the Guarantees if you buy something and they close before it expires.
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For manufacturers warranties, the warranty can then be administered directly by the manufcaturer.
For extended warranties, they 'should' be insurance backed, so you simply contact the insurers for any claims. This IS NOT the case with Richer Sounds though, who aren't insurance backed.
I don't think they're suggesting that the company's about to go bust, just that they might be shutting some stores. In which case nothing happens to the guarantees, you just won't be able to take your broken toaster into the shop.
Do you have a source for this info about Richer Sounds?
If they don't insure their extended warranties are they the only company to not do so? If not then why mention them specifically.
Just wondered why you feel this info on Richer is relevant to a thread about Comet, do you work in the business?
If you do then you should declare it on every post I think.
Comet are not going bust, it's just their sales are down quite a lot I think.
From their website:
5 Year Supercare & 5 Year TV Guarantee are exclusive Richer Sounds offers and are operated and financially backed by Richer Sounds PLC. The Financial Services Compensation scheme does not apply to this warranty and monies are not ring-fenced from Richer Sounds plc.
Already answered by Roush.
I mention it because it's VERY relevent - as far as I was aware after a very highly publicised failure a number of years ago, all such schemes were supposed to be insurance backed. Presumably this isn't the case?, or RS have found a loophole?.
As far as I'm aware the Comet scheme 'should' be insurance backed, it's certainly never been mentioned that it's not (unlike RS).
It isn't the case. It may be an added selling point that a warranty is insurance-backed, but there's no legal requirement for it to be so.
The nearest one is now over 18 miles away.
All we have now is a Currys and an Argos here as well as a tiny Hughes which is not that great.
I was just looking onine for the Clacton Comet didnt realise it had closed down
Whilst it is true there is no legal obligation to insurance back extended warranties, the customer should be made fully aware if the scheme isn't underwritten, which is often the reason that some warranties are far cheaper than others.
RS aren't slow to highlight the low cost of their warranties, I suspect they are slightly less keen to highlight HOW they've been made less expensive (although it is on the website).
The problem, which Nigel Goodwin has correctly pointed out, is that a few years ago, in quick succession there were the failures of Tempo, Tiny and Time. All had sold extended warranties, none were underwritten leaving customers out of pocket.
Whilst DSG often get criticised on these boards, to give them credit, as far back as 1988 their extended warranties WERE insurance backed. Had the company failed for any reason the customers would still have been covered.
Not quite correct - the initial warranty may be, but their extended warranties are underwritten - see link
http://www.johnlewis.com/jl_assets/pdf/extended_warranties_07.pdf
It would be a shame if Comet closed stores, but I've only bought from them online in recent years anyway. It's difficult to justify a store where they can't staff it with knowledgable people or compete with online prices.
By comparison, Richer Sounds and John Lewis staff usually know a lot about the products they sell in stores.
As I have previously confirmed on this forum, our extended warranties are 100% operated and financially backed by Richer Sounds PLC.
We feel this works to our customers' benefit, enabling us to offer a much better deal by financing the warranty ourselves. This has been the case for the many years we have been offering extended warranties to our customers.
We do make our position clear on our website, for more information please see the following link:
http://www.richersounds.com/information/warranties
Whilst nothing is certain in life, I feel I should point out that we have been successfully trading for thirty three years and are in a strong financial position for the future!
Many thanks,
John Clayton
Operations Director
Richer Sounds
I can't say anything about other stores but my local store whenever I go in it looks like a jumble sale and the staff don't seem to be interested in helping customers as they're too busy standing around talking to their mates.
And if you do dare to go up and ask them something you can almost guarantee they won't have a clue.
Indeed.
In the past Comet were very competitive on their pricing, and usually cheaper than most other places, but that doesn't appear to have been the case for a number of years now.
Still, it would be sad if they pulled out of the UK, another well known name gone and substantial job losses if they can't find a buyer.
Too much competition?
Woolworth's traded for 99 years before going under.
The Co-op traded on the high street for many years before disappearing from virtually all high streets.
If Comet disappear in the next couple of years they'll be just short of their 80th birthday.
Longevity on the high street, frankly, means absolutely nothing in terms of the financial health of the company - perhaps if RS posted their financial results on their website that would provide more confidence in this particular scheme?
Darren
With all due repects, won't the company just continue under a different name?
The last two Comet shops I've been in (Peterborough and Stevenage) looked in need of some love and attention. Stock levels at both stores appeared to be at a minimum, there were large gaps on the display shelves and it didn't make me want to stay and browse for any longer than I had to.
A lttle tip. Once you know what you want, try and source it locally. I did this recently with a new TV and the local store agreed to match the price I was quoted at both Currys and Costco and included a five year warranty with the product.