Warranty fears after Apollo 2000 collapse
Thousands of customers with collapsed electrical chain Apollo 2000 may have been left with expensive extended warranty insurance that is effectively worthless, it was feared today.
After the recent failure of the MFI chain, there was not enough money left to cover the extended warranties on the goods it had sold. It is now feared the same situation may exist at Apollo 2000.
Many customers have paid extra for the insurance, which extends cover beyond the normal 12 months offered by manufacturers of fridges, TVs and other household electrical goods.
Yesterday shoppers were faced with shutters and locked doors after the firm's dozen stores were closed by administrators from KPMG, including branches in Wolverhampton, Cannock and Handsworth.
The administrators said they had no choice but to shut them and sack nearly all the 180-strong workforce when called in after the failure of a last-minute rescue bid by Apollo's owners, the Cranham Group.
Today KPMG said its team was still assessing the financial situation and could not yet comment on whether warranty claims would be honoured.
A shopper at Cannock, who did not want to be named, said he had spent £1,300 on a 50-inch plasma screen TV, DVD player and Sky unit and £250 on a five-year warranty. He said: "The DVD didn't work and when I rang yesterday I was told to bring it in today. I just couldn't believe it when I found everything locked up."
Customer Mark Latham, 28 of Gladstone Street, West Bromwich went to the Holyhead Road store to discover it was closed. He said: "I have three insurance policies with Apollo, for my fridge, tumble dryer and washing machine and went down today as by fridge had broken. I have no idea what to do next and no-one seems to have any answers."
* KPMG has set up a helpline for customers on 0121 507 9000.
