Tempo customers with faulty goods will be happy to hear the troubled electrical retail chain will be honouring its standard Coverplan repairs policies as of tomorrow.

The 37-store chain went into administration on 24 September in a bid to trade its way out of trouble over the Christmas period while looking for a financial backer.

Initially it looked as though Tempo would be suspending its repairs policy. In a document seen by PC Advisor from administrator N B Kahn of PricewaterhouseCoopers it was stated:

"If you are a customer who has purchased an item on, or prior to, 24 September 2001 and you want it repaired under an existing Coverplan policy or otherwise, I regret to inform you that we are not able to complete the repairs at this time."

But following a change of heart, which a spokesman for PricewaterhouseCoopers put down to "an act of goodwill", the chain will be honouring all Coverplan policies.

Sami Pohjolainen, research manager at analysts IDC, blamed Tempo's problems on overdependence on a consumer customer base and competition from newly emerging channels. "Whereas PC World sell to both consumers and small to medium-sized businesses, they [Tempo] don’t have a business side," he said.

According to Pohjolainen the sale of consumer electronics and PCs through hypermarkets has also brought pressure to bear on Tempo.

Pohjolainen said IDC was forecasting a modest upturn in consumer demand for PCs for the latter half of the year, with the major beneficiaries being supermarket chains like Tescos, which is currently selling HP PCs through its larger stores.