Coles, Kogan and Mwave Will Honour Dick Smith Gift Cards [UPDATED]

Dick Smith going into voluntary administration left customers with gift cards not even worth the plastic they were printed on. Today both Coles and Kogan have offered credit in return for Dick Smith gift cards, Coles for the full amount and Kogan up to the value of $25.

TK Kurikawa / Shutterstock.com

In a statement Coles said it would exchange valid Dick Smith gift cards bought at Coles between July 1 2015 and the company going into administration for Coles gift cards of equal value. The offer is only open to customers with proof of purchase showing the gift cards were bought at Coles.

To claim through Coles, call 1800 061 562, choosing option "2".

Kogan have announced "We know it sucks to be out of pocket, which is why we want to help Dick Smith customers by offering them a Gift Card / Voucher Swap!"

Taking advantage of Kogan's offer is a bit more involved, requiring the use of snail mail. To claim your $25 credit you'll have to physically post in your valid gift card which Kogan need to receive by 1 February 2016. You will then receive an email with a voucher to be spent on anything from Kogan.com.

Full details, terms and conditions can be found here.

Update: Mwave has announced that it too will be offering $20 credit for its store in exchange for Dick Smith credit. Mwave's deal is similar to Kogan's, you'll have to physically send your card in as well as registering an account with Mwave.

Get all the details and read the terms and conditions here.


Comments

    If only Dick Smith had treated their customers with the same respect.

      I wouldn't call it respect. Kogan and Mwave are both buying back cards for cents on the dollar, which they will then cash in as creditors, likely in the tens of thousands of dollars depending on how many people take them up on their trade in offer.

    So, dick smith are still trading, right? Are they just flat-out refusing to accept gift cards at the moment? That's harsh. They shouldn't really be allowed to continue trading if that's their tactic. They should only be allowed to disregard gift cards if they're closing down and liquidating the company. In my opinion, at least

      If only it were that simple. Insolvency laws in this country are a bit of a joke. Once administrators are appointed, they get first go at any money available (and they take a lot), including the unspent portion of gift cards. That's followed by employee entitlements, then secured creditors (usually banks and other financial institutions), then finally unsecured creditors. So it's not really Dick Smith stores trading anymore, it's the administrators. If they sell the business as a going concern, a new company will begin trading, but they will be under no obligation to honour gift cards from the previous company unless that's part of the deal (highly unlikely).

      If you've never been through one of these before (I have on several occasions), you will know that unsecured creditors almost never receive anything at all...zero, ziltch.

    Could Kogan pile up the cards and register as an unsecured creditor?

      For 1 cent in a dollar return? I don't think so!

      Quite possibly, but that's not why he's doing it. The money will be coming straight from his marketing budget. He comes across as a white knight rescuing the poor Dick Smith customers. Meanwhile, his face is plastered over every news site and TV news bulletin. It's a pretty clever and relatively inexpensive move by Kogan.

        Clever, yes. Inexpensive, I'm not so sure. With very few other options out there, I imagine they'll have quite a few people take them up on this. Granted, most will end up spending more than the $25, making it a good marketing ploy, but I still think it will cost Kogan a fair bit upront.

          $25 via snail mail which most people won't be bothered to fill out. Yes it's good marketing, no there is no downside. If someone does, who cares its $25. Win win for Kogan.

    Tony - As far as I can tell - it is not up to D.S. Gift card holders are actually now officially classed as "creditors" as they are owed product but now will have to wait to see what they are given. They will probably be lumped with the banks and other creditors if D.S closes down and will be paid out something but not the full value of the card. If D.S manages to get through this rough patch then they will be able to honour the cards again and may be able to offer something to card holders.

    Right now nobody knows what the outcome will be and that is exactly what "Administration" means - an Administrator is working to understand what the future may hold for D.S.

    I hope ASIC has a close look at their books, if they were trading while insolvent to capitalise on the christmas trade the directors should be forced to sell their luxury cars and penthouses to cover customers. And if they are not insolvent then why the hell not respect gift card purchases!

    Walk in, select items to value of gift card off the shelf, slap gift card on counter and walk out. Problem solved.

      and immediately get arrested for shoplifting. You would be stealing property from the administrators, not Dick Smith.

        Get arrested by who? Can't imagine any Dick Smith staff chasing you down and tackling you to the floor. Can't imagine that they would give a rat's a...
        Dick Smith management deliberately, calculatedly and flagrently stole your money, take it back.

          Companies deliberately run their businesses into the ground now?

            No, companies already run into the ground by bad managers deliberately lie about the state of affairs before Christmas so they can steal your money to make the books look better at the winding up. If you bought a gift card, they stole your money.

    Coles and Woolworths are doing the right thing. Kogan is just taking advantage of a bad situation - shame on them.

      Actual coles and woolies are only doing it because the law requires them. you can bring the cards back with receipt for a full refund, this has always been true, and is a simple refund right.

    sirjay - they are not insolvent as such - insolvent implies two things - 1 - that they can't cover their present debts and - 2 - that their creditors are not going to allow them time to work out a plan. It seems as if number 1 is true but their major creditors are allowing them some time to work out a plan - that is what Administration is about. It may turn out that the company is doing ok but they just need time and the creditors will give them time. It may be the case that they can sell all or most of the company and get back some money. If they are able to sell the company then it would be up to the acquiring company to decide how to treat gift cards.

    steve - that is probably the worst way to deal with it. You will be arrested for theft and you have turned a little issue into a big fat issue. You have also made the problem that was Dick Smith's into your own problem.

    Learn your lessons people. Why give gift cards? Give cash. Its the gift card accepted everywhere.

      I agree, gift cards are the "I don't know enough about you or care enough to learn" approach to gifts. IF a gift card is necessary, then a Prepaid VISA card is best

      Last edited 09/01/16 12:32 am

      A gift card is basically cash that can only be spent in one place, and has an expiry date. So you've successfully traded valuable cash for shitty cash. Good job. To quote Dilbert:
      "It shows thought!"
      "It shows defective thought."

    I wonder what Dick Smith himself thinks of all this?

    Dick Smith was a matter buisness man and ruthless importer, and being the nice guy is all a created image of his.

    His sick Smith brand food for instance is touted as non import, and he has bashed importers, yet that was his whole goal with DSE, and his original ads go one about him importing to under cut expensive Australian competition.

    It's not surprising at all that Dick called on the outdoors owner to pay the cards. This is because it's popular to bash the guys that made the most money. If he really cared he would pay them himself as the founder, if not just to have his name cleaned out of the gutter.

    A few business's are coming out of the wood works to take advantage of this. Even hotel chains are getting in on the act, honoring the cards to use towards a booking, restaurant etc... http://www.bendigoadvertiser.com.au/story/3655927/horshams-ducks-nuts-to-honour-dick-smith-vouchers/?cs=2452

    I'd be none too surprised over the coming weeks we'll have a quite a few business's doing this for PR and the like.

    The DSE collapse reminds me of this segment on "The Checkout"
    https://www.youtube.com/watch?v=xvk-0yXbVnA

    Gift cards are not all they are cracked up to be..

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