http://www.techradar.com/news/world-...treets--956178


If this goes ahead what will happen to the Guarantees if you buy something and they close before it expires.
Last edited by StarDelta : 17-05-2011 at 07:10

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.

No! They're a local business (it was founded in Hull), lots of jobs will go in my area if they get broken up.

Yes it's bad, the parent company (Kesa) would continue of course.

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.

We used to have a Comet in Clacton but it closed down last year.

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.

John Lewis is another company offering an in-house warranty scheme.

Not quite correct - the initial warranty may be, but their extended warranties are underwritten - see link

http://www.johnlewis.com/jl_assets/p...ranties_07.pdf

I don't think I've ever taken an extended warranty, unless it was a free one offered by the store. It's usual they write to me about 11 months after my purchase to offer one too.

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.

Hi Nigel, all,

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 think it's been a long time coming this.

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.

Good news if Best Buy comes to our local area.....

Less competition is rarely a good thing, but Comet haven't exactly been competitive on price or service for many years.

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.

Here in my patch, we've got Comet on the same site as Best Buy, Currys/PC World store and soon Argos.

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?

Dont sound to good as 60% of my electrical goods in the house have been bought from Comet.

Darren

With all due repects, won't the company just continue under a different name?

High street competition rarely exists now for the bigger nationals. It's about competing as best they can with on line retailers.