Comet Warranty Information

I want to use my Comet appliance warranty

Britain’s second-largest electrical retailer, Comet, went into administration in November and December 2012. Comet was a household name, having been established in 1933 and revolutionising the out-of-town discount warehouse concept in the UK. It had 243 stores and over 6500 employees.

Unfortunately, when it went into administration it left many consumers wondering about the validity of their Comet warranties. Fortunately, if the appliance you purchased from Comet develops a fault, you can still rely on the manufacturer’s guarantee if it still falls under guarantee.

If a guarantee is no longer in place and you paid by credit card, you can claim back the cost of the item from your credit card company if it develops a fault.

Why did it burst into flames?

Comet succumbed to the credit crunch, as well as heavy competition from online retailers, who do not have expensive overheads like bricks-and-mortar stores do. They also lost credibility as an authority on electronics within consumer circles, possibly as a consequence of a lack of a definitive online presence.

The last nail in the coffin was when Comet’s insurers refused them trade credit insurance and the suppliers wanted to be paid in advance.

The previous owners of Comet, Kesa Electricals, did make a significant effort to keep things afloat by revamping stores and adding new marketing ideas. An example of such a marketing innovation was their deal with Cashstar, which launched an eGift card programme, as well as an interactive phone app developed by Grapple Mobile, to boost consumers’ shopping experience and increase sales.

However, this didn’t seem to work and Kesa Electircals became desperate to get rid of a business which was becoming a liability. It was sold for £2 (yes, two pounds) to Hailey Acquisitions Limited (HAL) which is an arm of OpCapita, a private investment firm based in London. Kesa Electricals was so grateful to get rid of Comet that it invested another £50 million into Hailey itself. Although Comet was placed under administration, HAL has received more than £54 million from the sale of Comet’s stock and diverse office equipment. Unsecured creditors, however, will receive only about 1p per £1 owed to them by Comet.

Some blame Comet’s collapse on OpCapita’s lack of transparency when it came to their funding, their financials as well as their business plan details. Another consequence of this acquisition and low creditor pay-out is that companies like Icetech, which used to manufacture freezers in Castletown, Scotland, went into administration shortly after Comet, in April 2013. Icetech was a major supplier to Comet and Comet owed the small business £900,000. This is just one of the many side businesses, such as suppliers, logistics, storage companies and so forth that are affected when major retailers plummet.

What did the experts say?

Neville Kahn, who was at the time a joint administrator at Deloitte, said that Comet had been ‘battling the changing landscape of the electrical retail sector of many years’ because of the online retailers who did not have the same overheads such as premises rentals and so forth. It did its best to ensure that all the stores continued to trade, honoured the delivery of already-ordered items and ensured that the employees were paid. Although no additional deliveries or installations could be made, all shoppers who had Comet gift-cards or vouchers were advised to use them as soon as they could with a ‘whilst stocks last’ caveat. Comet was also, for obvious reasons, unable to issue any refunds or returns.

So after all this time, how does this affect my Comet warranty?

In 2012, many consumers were panicked about the validity of their Comet warranties. Fortunately, if the appliance you purchased from Comet develops a fault, you can still rely on the manufacturer’s guarantee, if the appliance is still valid for guarantee purposes from the date of purchase.

If a guarantee is no longer in place and you paid by credit card, you can claim back the cost of the item from your credit card company if it develops a fault, thanks to the Consumer Credit Act, whereby consumers are protected on purchases made on their credit cards, from £100 all the way up to £30 000. However, the onus is on you to prove that the product is inherently broken and not just faulty through wear and tear. Naturally, if you have had the product for some time, this will be more difficult to prove. If none of these work, you are a creditor of Comet’s and are unlikely to get a refund of any kind.

My Comet appliance is under extended warranty

If you purchased an extended warranty from Comet, this is run by a third party company which is still trading, ExtraCare, part of the Warranty Group, so your warranty will still be valid. If you need to claim under your extended warranty, you can reach the switchboard on 015 948 63 000.

I want to extend the warranty of my Comet appliance

Fortunately, you are able to extend the warranty for your Comet appliance without worrying about Comet’s being under administration. The Warranty Shop has distinguished itself as a reliable source of insurance, and this allowed the company to expand its product range to you through Sure Wise Ltd.

Surewise.com will extend the warranty on many approved appliances that are younger than 8 years with just one policy. Whether you want cover for your fridge, washing machine, dishwasher or home entertainment systems, we offer an affordable all-in-one policy for you. We can also offer an extended warranty for a single appliance if that is all you require.

Surewise.com is one of the most affordable insurance companies around, but please keep in mind that we don’t offer cover for pre-existing faults. However, Surewise.com always analyses products from different underwriters to make sure they are giving you, the customer, the best possible deal. This also means that renewal rates are kept low and affordable. Insurance can be a life-saver when things go belly-up so make sure you pick the right insurance from the right insurance company.

About Comet

Comet sold electronics and household appliances from the 1950s. They are known for pioneering the concept of the out-of-town discount warehouse in the UK. The Comet Group entered administration and closed all stores in December 2012.

(Research & information correct at March 2016)