A national jewellery company could leave a number of Saskatoon residents without warranties on their products after announcing plans to close its Canadian stores. .
Ben Moss Jewellers is currently offering a “going-out-of-business” sale at all of its 54 Canadian locations. The company is citing a weak Canadian dollar and soft western Canadian economy as its reason for closing.
Saskatoon resident Josh Barr purchased an engagement ring for his fiancée from the company a year ago. He said he called the company after learning it was closing its stores and was told he will not longer have the warranty he paid for.
“Hopefully it makes it to the wedding unscathed and it will kind of keep its lustre and keep its sparkly goodness that we purchased it with,” Barr said.
“That’s the ring that we picked together, that’s the ring that I proposed to her with, that’s kind of a symbol of how far we’ve come together and how far we can go.”
Ben Moss’ liquidation effort is part of a legal process that is common for companies trying to restructure or sell off its assets, according to law professor Ron Cuming. Last Friday an Ontario court approved the measure.
“The whole purpose of going to court is the court will say no creditor can proceed against you now until this matter is settled,” said Cuming, who is an expert in insolvency law.
Cuming said the process could take months and will eventually be decided in court, however those with warranties shouldn’t “expect much of anything” once it’s over.
“If a company can’t keep its promises, you’re out of luck,” Cuming said.
“There’s nothing in law that guarantees you a right to be paid back or have your warranty honoured.”
While Saskatoon’s Ben Moss customers may have lost their warranties, Eastern Goldsmith is attempting to fill the void. The Saskatoon-based company handled repairs for the closing retailer and is offering a 25 per cent discount for any work needed on items without a warranty.Retail