KPMG flooded with calls on Empire Direct
Electrical retailer Empire Direct has gone into administration. The Leeds-based chain's 14 warehouse shops and online store are shut as it was unable to trade in administration because of low stock levels. The firm's collapse means 150 jobs have been lost.
Mark Firmin and Richard Fleming of KPMG LLP have been appointed by the High Court as joint administrators. They are trying to work out what the situation is for customers who have paid for goods but not received them.
The company was one of the few alternatives to DSGi brands like Currys and PC World, which are having their own problems. The company turned over about £150m a year and had been trading for 25 years.
A customer telephone line set up on Tuesday by KPMG to deal with those enquiring about collapsed Empire Direct is receiving 1,000 calls a day.
Joint administrator Mark Firmin said he was aware the situation was ‘regrettable’ for many Empire Direct customers.
Customers have been inundating the line with calls after being told they would not receive refunds or goods ordered from the electronic goods retailer, which went into administration on Monday blaming bad economic conditions for its demise.
Empire’s terms and conditions state that the customer does not take ownership of goods ordered until delivery or collection
Any money paid by customers went into the company’s overdrawn bank account.
KPMG said there are 5,800 customers who have paid for goods that they have not yet received. Of these, 4,800 paid by card and, through the use of banking industry data, it is estimated that just over 4,000 of these will be able to claim a refund from their card issuer.
Remaining customers will become unsecured creditors of the company, and can file a claim with the administrators, though a dividend is unlikely.
No further redundancies have been announced, and administrators are said to be continuing attempts to sell the business’s assets, having received over 159 expressions of interest from potential buyers.
Sources: Accountancy
The Register
1 comments:
. Why does anyone even care what KPMG has to say? Why does anyone want to work at KPMG? KPMG audits a disproportionate percentage of financials yet totally missed the banking collapse. Exactly what is KPMG expert at and why would anyone listen to them after all their failed audits of failed institutions? Many as early as 2005 predicted the financial meltdown and the unsustainable lending pattern of the financials including Dr. Roubini of the Stern School of economics, why didn’t KPMG listen. If I were a partner or employee at KPMG I would be extremely concerned about all the pending lawsuits and potential criminal liability of KPMG. You know for a fact that Tim Flynn the CEO and Joe Loonan the head lawyer will not stand behind the partners as evidenced by the tax partners KPMG threw under the bus when the DOJ came a calling. In fact, Flynn, completely reneged on the former O’Kelley’s promise to support the tax partners (after he got brain cancer) and lied to the tax partners by pulling the carpet out from under the them by hiring Bennett and Holmes to not only lie about the tax partners to the DOJ but deny them legal fees for defense at the DOJ’s request. Loonan, Holmes and Flynn, totally screwed the tax partners and an email exists wherein Loonan specifically states that in the KPMG tax settlement with the DOJ he has no idea if any of the facts are correct but KPMG better sign or the DOJ will put them out of business and ends the email by saying: “freedom is just another word for nothing left to lose”. The point of course is those that run KPMG have no honor, are lying scum and if you are employed by KPMG and something bad happens, KPMG will do everything it can to ensure it survives at your expense. Of course something bad has happened, the banking collapse was a no brainer, predicted by many and most of the KPMG audits of the financials are riddled with fraud. The lawsuits and criminal investigations are coming, no doubt. All KPMG partners and employees should be very concerned as KPMG has no problem throwing them under the bus for a life of ass raping if it will save KPMG a nickel. Why any clients would accept advice or rely on KPMG for anything shows a total lack of due diligence and perhaps, negligence by those clients choosing to use KPMG. Of course, the last sentence does not apply to those clients that are actually consensually engaging in fraud with KPMG. The firm of KPMG has no honor or expertise in any matter just self interested thieves like Flynn, Holmes and Loonan attempting to make as much money as possible for themselves before the firm implodes. Many emails exist concerning KPMG’s malevolence and will be disseminated over time. Thoreau has a great quote, “no one can associate themselves with the U.S. Government without disgrace”, the same applies to KPMG, no one can associate themselves with KPMG without disgrace.
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