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Edge warranty offer "misleading": Qld reseller

Edge warranty offer "misleading": Qld reseller

The head of a former Edge reseller has branded Warranty Works' Edge Warranty Offer as "misleading", questioning the deal which the warranty provider purported would honour all outstanding Edge warranty claims through a reseller bailout plan.

The Queensland source claimed the warranty offer only applied to Edge PCs and systems "received by customers that had not been paid for, therefore all other previously paid for goods (were) not subject to any negotiation".

Edge's creditors, Hunter and Stewart, issued the reseller a settlement offer earlier this week, asking the company to accept a 15 per cent discount on a $30,000 debt due to Edge "in lieu of any current or future warranty claims" the reseller had in relation to Edge products not paid for.

The reseller has accumulated some 53 Edge warranty claims since Edge took a nose dive in June this year. "Based on the cost of parts alone, this costs me $6000 to $7000, not accounting for $5000 worth of our stock Edge is still in possession of," he said. "With 53 claims, you could justifiably add labour costs," he added.

The source also claimed Hunter and Stewart was pressing him to pay $42,000 in unpaid Edge stock. "They're not even justifying the claim," he said.

"This settlement is laughable. We're rejecting this offer. I haven't been getting anywhere with the creditor or administrator," he said, claiming both Hunter and Stewart and Armstrong Wiley had stonewalled his repeated attempts since July to contest the offer. "They've threatened legal action without notice if we refuse to pay what they're asking for. It's going to end up in court.

"We're only a small company with seven people. To take $7000 out of my cash flow and profit, and on top of that to have to wear the cost of potentially $50,000 in (Edge) repairs and maintenance - it's put a financial strain on us."

However, other small Edge resellers were "hurting more" than his company, he added.

Warranty Works was not available for comment before press time.


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