ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Saturday, August 31, 1996 TAG: 9609030108
SECTION: BUSINESS PAGE: A-6 EDITION: METRO
SOURCE: GREG EDWARDS
State consumer officials said Friday they will step into the controversy involving Holdren's appliance stores, the chain's new owners and customers who have found themselves with worthless warranties.
"We're making an effort to get the parties together," said Marion Horsely, a spokesman for the Virginia Department of Agriculture and Consumer Services. The state is trying to work out a solution that will make everyone happy, particularly consumers who bought service contracts from Holdren's former owners, she said.
The state agency is attempting to set up a meeting or conference call with the former owners of Holdren's Inc. of Roanoke and principals of Crenshaw TV & Appliance Co. of Raleigh, N.C., who bought the company last month. The meeting would help decide what to do about service contracts the former owners sold but the new owners say they have no obligation to honor.
Customers who bought extended service contracts from Holdren's discovered earlier this week that Crenshaw would not honor them. Crenshaw said it bought only Holdren's assets, worth $2.3 million, not its $3.2 million in liabilities that include the service contracts.
Horsley said the state has received several phone calls from Holdren's customers about the situation. Those people are being mailed complaint forms to fill out and return to the department, she said.
Customers must file the forms to be eligible for reimbursement from a $100,000 letter of credit that Holdren's former owners posted with the state as a requirement for offering the extended service contracts.
LENGTH: Short : 36 linesby CNB