The vendor that provided Dick Smith with extended warranty services has indicated it would honour all existing contracts.
The Warranty Group had, since 2008, exclusively supplied the electronics reseller with extended warranty contracts - agreements that consumers may buy in return for extra protection beyond statutory and manufacturer obligations.
The company announced Wednesday morning that all 135,000 still-valid extended warranties purchased through Dick Smith, worth $2 million in retail value, would still be honoured despite the retail chain's demise.
“We’ve made this decision because it is the right thing to do by our customers,” said The Warranty Group south-east Asia sales director Hemaka Perera.
“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.”
All physical Dick Smith outlets will close within the next five weeks, while the online business was sold to Kogan earlier this week. The Warranty Group will continue to honour extended warranties sold in all physical stores until the closure of the network.