The company that provided extended warranties to Dick Smith customers has agreed to honour all claims before and after the retail chain went into receivership.
The Warranty Group announced the move on Wednesday. It estimated the decision would cover 135,000 extended warranties impacted by the receivership, with a retail value of $2 million.
“We’ve made this decision because it is the right thing to do by our customers,” spokesman Hemaka Perera said in a statement provided to The New Daily.
“The closure of Dick Smith retail stores is unfortunate and we want to give our loyal customers the peace of mind we promised when they chose to buy products from Dick Smith.”
Extended warranties are extra guarantees above and beyond the legal rights enshrined in Australian consumer law. To qualify for a Warranty Group guarantee, the customer would need to have paid for extra protection.
Dick Smith’s 363 Australian and New Zealand bricks and mortar stores are in the process of shutting up shop for good after the company went into receivership in January with debts of about $400 million. No buyer has been found for these physical stores.
But the retail chain’s intellectual property rights have been purchased by online retailer Kogan. It will take control of the Dick Smith online business from June 1.
Kogan’s founder, Ruslan Kogan, said he would use the brand to offer more affordable technology to consumers.
“I remember as a kid always visiting Dick Smith to look for parts to upgrade my computer,” Mr Kogan said in a statement on Tuesday.
“There is a strong history of passion in the Dick Smith community for how technology can improve our lives, and we look forward to helping make it more affordable and accessible for all.”