Dick Smith Is Officially Closing All Of Its Stores

At the beginning of this year Dick Smith went into voluntary administration. Today its receivers have announced that all 363 stores across Australia and New Zealand will be closed over the next eight weeks.

2890 staff members will be affected by the closures.

According to the receiver James Stewart, offers received simply weren't high enough.

“While we received a significant number of expressions of interest from local and overseas parties, unfortunately the sale process has not resulted in any acceptable offers for the group as a whole or for Australia or New Zealand as standalone businesses,"he said. "The offers were either significantly below liquidation values or highly conditional or both.

“We would particularly like to thank the Dick Smith employees for their support and patience during the receivership process.”

According to recent reports, Dick Smith owes 3200 employees $2 million in unpaid wages. According to the receivers, these staff members will rank as priority creditors and are expected to be paid in full.

Update: Dick Smith will be holding a fire sale of remaining stock in all stores, to begin Friday 26 February — tomorrow. Head to Lifehacker for more details.


Comments

    I feel sorry for the staff....but on the other hand .... about time!

    Any chance there will be a massive clearance sale? =D

    Does this mean massive discounts, or?

      no discounts yet... looks like business as usual at our local store. Even the 4K DS TV is still $100 more than it's lowest price... anyone expecting a bargain had better know their RRP and sales history :)

    It was pretty much inevitable from the day the receivers were appointed. Deepest sympathy for the staff. It won't be much fun for them.

    That investors are allowed to buy a company: sell off its assets; tart up the neutered company for an IPO; flog the shares; gleefully watch the share price tank; and to then wipe their hands of the matter, should be illegal.

    Condolences to the 3200 Dick Smith staff in Aus and NZ who will lose their jobs. The writing was on the wall for some time.

    All that said, I don't think we'll see any substantive discounts in the next two months. The receivers want to get as much money back as they can. Full price ahoy!

    Last edited 25/02/16 4:06 pm

      Full price with no retailer backing for returns and warranty? Tell them they're dreaming.

      The only winners from this will be the overpaid liquidators. It is CRIMINAL the amount of assets stripped from companies by accountants who seem to be able to charge anything they want, without breaking down the hours, costs or hourly rate, to the poor investors. Seen it before... companies that had good assets get wiped out by slowwwwwwwwww management of liquidation. The ACCC or ASIC should make these liquidators answerable as well as the Boards who knowingly make bad decisions yet walk away with huge payouts scott free. Business reform is an neglected area of law. How many Mums and Dads bought shares or allowed their super funds to invest in a brand they knew and trusted? The problems didn't happen overnight. The managers should have been feeding back to the Board that the sales strategy wasn't working. The huge expansion and the amount of overpriced "own brand" products along with weekly "specials" catalogues that cost a fortune to print. I have kept some. It was obvious to any regular reader that specials weren't always special. Unless it said "lowest price ever" you can bet you were paying too much. Consumers aren't stupid these days. Well most aren't. Dick Smith Electronics had too many intruders onto their home turf. Officeworks sells many similar products for less. JB Hifi takes the TV end on. Where were they supposed to find their niche to be profitable? Taking on KMart, Big W and Harvey Norman for small appliance? I don't think so! There are people in the corporate ladder who know exactly what was wrong A LONG TIME AGO. These people should be held accountable to the shareholders and the poor staff now out of jobs because they couldn't manage a raffle.

    While I feel bad for the staff for losing their jobs, I'm glad they're being considered priority creditors so should actually get their owed pay.

    Also, when do the closing down sales start?

    I feel for the staff. Tough times for them.

    DS bought Mac1. Any news on what will happen to Mac1 stores and their staff?

    Staff have my sympathies... I spent 8 years managing various stores before leaving nearly 4 years back. It was definitely the people there who I remember the most. Fun times, high fives and great memories. Lots of tears and frustrations too with management over the impossible expectations and how they manipulated people. Some mental scars as well that aren't yet healed. RIP DSE :-(

    I too feel for staff. I'm sure some remained optimistic, despite the death knell ringing.

    Geez I remember it was one of my favourite retail stores as a kid. The electronic kits, gadgets and miscellaneous that Jaycar/Radio Parts now stock.

    DS walked away from it's roots (I guess they had to for strategic reasons) and morphed into 'yet another' electrical retailler.

    What a shame...

    After talking with some existing staff, they were told as late as a few days ago that there was a 'bidding war' between Tata (Indian) and a Chinese Manufacturer. Apparently there were a number of interested parties keen for the company. I guess this was to stop them from leaving and to keep them optimistic.

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