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Every week in our Money blog, we answer questions about your financial problems or consumer disputes. This week, a reader asked what rights they had after her sofa was ruined by a dry cleaners.

Reader Maureen asked: “I have had half my sofa covers cleaned by Johnsons, the cleaners. They have been ruined as the Belgian linen was hand washed and the care instructions not followed.

“This happened in July. I have been in communication with customer services who finally agreed that half a sofa could not be reupholstered – and, verbally, said they’d cover the whole suite.

“Last week I received an email from management now reneging on the offer and instead offering a small amount of money that will deem my sofa unfit to use as it won’t cover either a reupholster or new sofa. Where do I stand?”

Reader Maureen sent us a photo of the ruined sofa
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Reader Maureen sent us a photo of the ruined sofa

Our cost of living specialist Megan Harwood-Baynes replied…

You sent me further details of your complaint, including photographs and your correspondence with Johnsons (the bits that have been in writing).

I can see in your email correspondence with Johnsons that they will not pay what you say is required to reupholster the whole sofa. They say their liability to you extends only to the actual covers that were submitted for cleaning.

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The original sofa cost you £2,400 eight years ago, and you also have a quote for completely reupholstering it, which comes to £2,560. You (rightly) argue that it’s not really possible to reupholster half a sofa.

Regarding the verbal offer you say was made, Helen Dewdney, a consumer expert at The Complaining Cow, says she always tells people to put everything in writing because there is no evidence when you make phone calls – so bear this in mind going forward.

As for your rights now, your issue falls under the Consumer Rights Act 2005, she says.

“If services are not undertaken with reasonable skill and care and your items get damaged or lost then you have the right to claim compensation,” Helen says.

This can include claiming for the cost of replacing a damaged or lost item, although there may be a reduction for wear and tear of the original item.

Johnsons has already offered some compensation to you (£800). They claim that the age of the sofa means it “holds no residual value” but offered 25% of the original price, an additional £200 as a gesture of goodwill, and a refund of the original cleaning charge.

However, you are not happy with this because you say it is not enough to either fix or replace your “ruined sofa”.

I reached out to Johnsons, and they did not reply, but you told me that two days after I emailed them, they almost doubled the amount of compensation on offer (to £1,500).

You went back to them with a counter-offer of £1,700, they agreed, and you are now finally able to bring the saga to a close (and get your sofa fixed).

Had they not agreed, you could have considered these next steps…

Membership of the Textile Services Association is available to laundries, dry cleaners, textile renters and their suppliers, Helen says.

“If the company you are using is a member, then the TSA offers a conciliation service. You may be asked to prove your claim and, on a loser-pays basis, use the association’s testing service. It also offers an arbitration service if the matter still cannot be resolved.”

However, if the firm is not a member of the TSA – and it looks like Johnsons is not – then you have the option of taking the matter to the small claims court – or equivalents in Scotland and Northern Ireland.

“If a company provides no information whatsoever regarding what you should do if you have a complaint, this is a red flag,” Helen says.

“If a company does not recognise that mistakes happen and outlines what it will do if a problem occurs, it cares little for customer service or reputation.”

This feature is not intended as financial advice – the aim is to give an overview of the things you should think about. Submit your dilemma or consumer dispute via:

  • WhatsApp us here
  • Email news@skynews.com with the subject line “Money blog”

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BP raises prospect of more job losses as AI drives efficiency

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BP raises prospect of more job losses as AI drives efficiency

BP has signalled an accelerated effort to bring down costs ahead, refusing to rule out further job losses as artificial intelligence (AI) technology helps drive efficiencies.

The company, which revealed in January that it was to axe almost 8,000 workers and contractors globally as part of a cost-cutting plan, said alongside its second quarter results that it was to review its portfolio of businesses and examine its cost base again.

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BP is under pressure to grow profitability and investor value through a shareholder-driven refocus on oil and gas revenues.

Just 24 hours earlier, the company revealed progress through its largest oil and gas discovery, off Brazil’s east coast, this century.

BP said it was exploring the creation of production facilities at the site.

It has made nine other exploration discoveries this year.

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BP’s share price has lagged those of rivals for many years – a trend that investors have blamed on the now-abandoned shift to renewable energy that began under former boss Bernard Looney.

BP interim CEO Murray Auchincloss, takes part in a panel during the ADIPEC, Oil and Energy exhibition and conference in Abu Dhabi, United Arab Emirates, Monday Oct. 2, 2023. (AP Photo/Kamran Jebreili)
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BP boss Murray Auchincloss is facing shareholder pressure to grow profitability

His replacement, Murray Auchincloss, has reportedly come under shareholder pressure to slash costs further, with the Financial Times reporting on Monday that activist investor Elliott was leading that charge based on concerns over high contractor numbers.

Mr Auchincloss said on Tuesday that AI was playing a leading role in bolstering efficiency across the business.

In an interview with Sky’s US partner CNBC, he said: “We need to keep driving safely to be the very best in the sector we can be, and that’s why we’re focused on another review to try to drive us towards best in class… inside the sector, and technology plays a huge part in that.

“Just technology is moving so fast, we see tremendous opportunity in that space. So it’s good for all seasons to drive cost discipline and capital discipline into the business. And that’s what we’re focused on.”

When contacted by Sky News, a BP spokesperson suggested the company had no plans for further job losses this year and could not speculate beyond that ahead of the conclusions of the new cost review.

BP reported a second quarter underlying replacement cost profit of $2.4bn, down 14% on the same period last year but well ahead of analyst forecasts of $1.8bn. Much of the reduction was down to lower comparable oil and gas prices.

It moved to reward investors with a 4% dividend increase and maintained the pace of its share buyback programme at $750m for the quarter.

BP said it was making progress in driving shareholder value through both its operational return to oil and gas investment and cost reductions, which stood at $1.7bn over the six months.

Shares, up 3% over the year to date ahead of Tuesday’s open, were trading 2% higher in early dealing.

Derren Nathan, head of equity research at Hargreaves Lansdown, said of the company’s figures: “Production increases, strong results from trading activities, favourable tax rates, and better volumes and margins downstream all played their part.

“It’s also upping the ante when it comes to exploration and development, culminating in this week’s announcement of an oil find at the offshore Brazilian prospect Bumerangue.

“Its drilling rig intersected a staggering 500m of hydrocarbons. Taking into account the acreage of the block, it’s given BP the confidence to declare the largest discovery in 25 years.”

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British Land hires lawyers to scrutinise retail rescue deals

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British Land hires lawyers to scrutinise retail rescue deals

British Land, the FTSE 100 commercial property company, has hired lawyers to scrutinise rescue deals for the high street retailers Poundland and River Island.

Sky News has learnt that Hogan Lovells, the City law firm, has been instructed by British Land to seek further information on restructuring plans that the two chains say are necessary for their survival.

British Land owns 20 Poundland stores, 13 of which would see rents compromised under its restructuring plan, while it is River Island’s landlord at 22 shops – seven of which would be affected.

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Retail industry sources said that British Land had already struck deals to re-let some of the affected Poundland sites.

The company, which has a market capitalisation of ? and is one of Britain’s biggest commercial landlords, is understood to have abstained on the River Island restructuring plan vote.

The appointment of Hogan Lovells does not amount to a decision to formally challenge the restructurings, but that remains an option in both cases, according to industry sources.

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Hogan Lovells has been engaged on a string of previous challenges to retailers’ rescue deals on the basis that they unfairly compromised property-owners.

About 20,000 jobs would potentially be put at risk if Poundland and River Island were to collapse altogether.

Both face sanctions hearings in court this month which will determine whether their rescue deals can go ahead.

Even if the proposals are rubber-stamped, about 100 stores in aggregate across the two chains will be permanently closed.

British Land declined to comment.

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Former fund manager Woodford facing ban and £46m fine

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Former fund manager Woodford facing ban and £46m fine

The City watchdog has provisionally banned former star fund manager Neil Woodford and fined him and his former fund company almost £46m.

The Financial Conduct Authority (FCA) said it planned to prevent Mr Woodford from holding senior manager roles and managing funds.

The watchdog also aimed to fine him £5.89m and Woodford Investment Management (WIM) £40m related to its collapse in 2019.

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Mr Woodford’s flagship fund, Woodford Equity Income (WEI), was wound down after investors tried to withdraw cash faster than the fund could pay out, amid concerns over its high exposure to illiquid and unquoted shares.

The FCA determined that Mr Woodford and the fund “made unreasonable and inappropriate investment decisions” between July 2018 and June 2019.

The fund’s sale of liquid assets and acquisition of illiquid ones meant WEI was unable to meet rules in place at the time, whereby investors should have been able to access their funds within four days.

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“WIM and Mr Woodford did not react appropriately as the fund’s value declined, its liquidity worsened and more investors withdrew their money,” the FCA said.

“The FCA has concluded that Mr Woodford held a defective and unreasonably narrow understanding of his responsibilities.”

Steve Smart, its joint executive director of enforcement and market oversight, added: “Being a leader in financial services comes with responsibilities as well as profile. Mr Woodford simply doesn’t accept he had any role in managing the liquidity of the fund.

“The very minimum investors should expect is those managing their money make sensible decisions and take their senior role seriously.

“Neither Neil Woodford nor Woodford Investment Management did so, putting at risk the money people had entrusted them with.”

Both Mr Woodford and WIM have referred the case to the Upper Tribunal for appeal.

He was yet to comment.

Mr Woodford was once considered the star stock picker of his generation.

He launched his own investment business after building up a reputation for delivering stellar returns while at Invesco Perpetual.

At its height in 2017, the Woodford Equity Income Fund had a value of over £10bn, but by the time of its suspension in June 2019, this had sunk to as low as £3.7bn.

While a redress scheme enabled investors to get some cash back, around 300,000 people lost money through the fund’s collapse.

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