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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
Image:
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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Daily Mail owner lines up NatWest to help fund £500m Telegraph bid

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Daily Mail owner lines up NatWest to help fund £500m Telegraph bid

The owner of the Daily Mail is lining up one of Britain’s biggest high street lenders to help bankroll its £500m deal to buy The Daily Telegraph.

Sky News has learnt that DMGT has turned to its long-standing bank, NatWest Group, to lend a substantial chunk of the Telegraph purchase price.

City sources said on Thursday that discussions between the two were still in progress.

It was unclear how much of the consideration NatWest might finance, or how much equity DMGT intended to put up as part of the deal.

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Last month’s announcement that DMGT was in exclusive talks to buy Telegraph Media Group achieved a long-standing ambition of the Mail proprietor, Lord Rothermere, to own the rival right-leaning newspaper.

However, the transaction still needs to be formally submitted to the culture secretary, Lisa Nandy, who has effectively asked for details of the proposed deal by early next week.

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Lengthy inquiries by the Competition and Markets Authority and Ofcom are also expected to follow.

DMGT’s exclusivity period came within days of a consortium led by RedBird Capital Partners abandoning its own deal amid opposition from within the Telegraph newsroom.

NatWest’s position as a principal lender would, in theory, be advantageous to Lord Rothermere, who will not want to be reliant on overseas financing for the deal.

The DMGT owner had originally intended to acquire a minority stake of just under 10% in the Telegraph titles as part of the RedBird-led transaction.

A previous deal proposed by a consortium including RedBird and the Abu Dhabi state-owned investment firm IMI collapsed after the government changed the law regarding foreign state ownership of national newspapers.

“I have long admired the Daily Telegraph,” Lord Rothermere said last month.

“My family and I have an enduring love of newspapers and for the journalists who make them.

“The Daily Telegraph is Britain’s largest and best quality broadsheet newspaper, and I have grown up respecting it.

“It has a remarkable history and has played a vital role in shaping Britain’s national debate over many decades.”

If the deal is completed, it would bring the Telegraph newspapers under the same stable of ownership as titles including Metro, The i Paper and New Scientist.

DMGT said in November that it planned “to invest substantially in TMG with the aim of accelerating its international expansion”.

“It will focus particularly on the USA, where the Daily Mail is already successful, with established editorial and commercial operations.”

NatWest declined to comment.

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OpenAI bags Disney characters for Sora short video app

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OpenAI bags Disney characters for Sora short video app

OpenAI has signed its first major licensing deal to bring well-known characters to life on its Sora video generation tool.

The company said the agreement with Walt Disney was part of a push to ensure the rights of creators in the generative artificial intelligence (AI) space amid growing concerns over copyright, fakes and misinformation.

It forms part of a $1bn Disney investment in OpenAI, that will see the entertainment firm roll out ChatGPT to its staff and grow its AI capabilities.

Money latest: Urgent warning over tumble dryers

The initial three-year licensing deal will allow Sora users to generate and share videos based on more than 200 Disney, Marvel, Pixar and Star Wars characters.

These include Mickey Mouse, Cinderella and Luke Skywalker.

Sora allows people to quickly create realistic clips based merely on text prompts.

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Disney and OpenAI said they were committed to responsible use of AI amid the backlash from critics who have pointed to widespread misuse of generative AI in the social media space – a practice known as AI slop.

Some have depicted fake messages from celebrities and even used the dead.

OpenAI CEO Sam Altman said: “This agreement shows how AI companies and creative leaders can work together responsibly to promote innovation that benefits society, respect the importance of creativity, and help works reach vast new audiences.

His counterpart at Disney, Bob Iger, added that the partnership would “extend the reach of our storytelling through generative AI, while respecting and protecting creators and their works”.

As part of the deal, some user-generated Sora videos will be made available on the Disney+ streaming service.

Dan Coatsworth, head of markets at AJ Bell, said of the tie-up: “It’s a win-win situation for Disney and OpenAI. Disney gets to deploy its beloved brands in the world of AI while keeping control of the intellectual property.

“Fans can use Disney characters to make videos and take social media content to another level. That could drive significant traffic to OpenAI’s Sora social media platform, turning a relatively unknown entity into a household name in a flash.

“As part owner of the business, Disney will be able to use the equity stake in OpenAI to ensure its characters are used in a controlled environment.

“It’s a significant step forward for the concept of fan fiction”, he concluded.

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Burger King UK lands new backing from buyout firm Bridgepoint

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Burger King UK lands new backing from buyout firm Bridgepoint

The private equity backer of Burger King UK has injected millions of pounds of new funding as part of a deal which paves the way for their partnership to be extended into the 2040s.

Sky News understands that Bridgepoint has invested a further £15m into the fast food giant in recent days, with a further sum – thought to be up to £20m – to be deployed over the next 18 months.

The new funding has been committed as Burger King UK’s Master Franchise Agreement with a subsidiary of Restaurant Brands International has been extended to 2044 in a deal which is said to align the interests of its various financial stakeholders more closely.

Burger King’s British operations comprise roughly 575 outlets, and employ approximately 12,000 people.

In results released this week, Burger King UK said it had delivered a “solid performance…amid sector headwinds” in 2024.

Revenue increased by 7% to £408.3m, with underlying earnings before interest, tax, depreciation and amortisation up 12% to £26m.

The company also said it had completed a refinancing process, with the maturity of its bank facilities pushed out to March 2028.

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Under the leadership of Alasdair Murdoch, its long-serving chief executive, Burger King plans to open roughly 30 new sites next year.

It comes at a challenging time for the UK hospitality sector, with casual dining chains TGI Fridays and Leon both filing to appoint administrators in the last few days.

Industry bosses say that last month’s Budget has piled fresh cost pressures on them.

Bridgepoint declined to comment on the injection of new capital into Burger King UK.

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