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Dick Smith goes into administration

Discussion in 'Living Room' started by MTR, 5th Jan, 2016.

  1. MTR

    MTR Well-Known Member Premium Member

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  2. pinkboy

    pinkboy Well-Known Member Premium Member

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  3. Coota9

    Coota9 Well-Known Member Premium Member

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    Electrical retailers are run on the razors edge due to ultra tight margins in their products,weakened Aussie dollar wouldn't have helped them either.
     
  4. willair

    willair Well-Known Member Premium Member

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    For someone that speaks softly ,and the way he carefully conveyed humility,even when he saw the way one of the Leyland Brothers was not doing too well,he left a 10k cheque in the letter box,but this was on the cards from the start,and the selloff late last year was maybe a signal the axe was about to fall..
    http://www.asx.com.au/asxpdf/20151208/pdf/433n73bms6bw51.pdf
     
  5. geoffw

    geoffw Moderator Staff Member

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    A few weeks back they had 16GB USB drives selling at 2 for $22 - individual price $9.98. That was a printed sign, the same sign at several branches at least.

    A company that's bad at maths isn't going to do well.
     
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  6. alexm

    alexm Well-Known Member

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    Once private equity got involved this was inevitable particularly for a locally based retailer.

    Hopefully the business can be restructured and many of the jobs (direct and indirect) preserved.
     
  7. Azazel

    Azazel Well-Known Member

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    Isn't it owned by Woolworths or something?
     
  8. pinkboy

    pinkboy Well-Known Member Premium Member

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    Was bought by PE firm Anchorage.

    Read my link for details.

    pinkboy
     
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  9. Coota9

    Coota9 Well-Known Member Premium Member

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  10. Xenia

    Xenia Adelaide Property Manager Business Member

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    very sad day indeed. Hope they can recover. It's tough for retail businesses, but these ones have been around for years.
     
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  11. MTR

    MTR Well-Known Member Premium Member

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    watching this had no idea, how can this happen?
    Apparently it was never really a great business, what a scam
     
  12. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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  13. pinkboy

    pinkboy Well-Known Member Premium Member

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    All above board. Creative Accounting at its very best.

    pinkboy
     
  14. abbyfresh

    abbyfresh Well-Known Member

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    Back in the day when it was like a Jaycar it had real authenticity and a special vibe to it. Those electronic kits and gadgets were awesome.
    Nowadays its confusingly a Harvey Norman, Kmart and JB all rolled into one.
     
    Last edited: 6th Jan, 2016
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  15. Coota9

    Coota9 Well-Known Member Premium Member

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    Once the lipstick was wiped off...yep it was a pig!!
     
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  16. Whitecat

    Whitecat Well-Known Member

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    The news article said net profits were down from $XXM to $47M or something like that.

    I'm confused
    Net profit is profit after paying all costs. Ie "positively geared". Why are they going into receivership if making a profit?
     
  17. Doncossack

    Doncossack Member

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    It was my favourite shop 25-30 years ago.

    Who else remembers those build your own electronic circuit boards which you had to screw together for example a beer powered radio or flashing lights? There was a booklet full of different circuit diagrams...Hours of entertainment and an early insight into electronics.
    I actually wanted to become an electrician or some type of electronic technician after it.
     
  18. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Unable to pay their debts when they became due - probably.
     
  19. Stu

    Stu Well-Known Member

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    Service in the local store was terrible - to the extent that I no longer even went into the store. By comparison JB Hifi along the road always seem to have staff on hand to serve who were very well versed in the products they sell and friendly.
    No real surprise to me that this has happened.
     
  20. Blacky

    Blacky Well-Known Member

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    Dont confuse profit with balance sheet and/or cash flow.

    Many profitable business goes broke simply because they run out of cash.

    Its like saying my property should be worth 10% more because the median price in the suburb went up 10%. Median price is one measure of many which can be used, and can be a smoke screen for a bigger picture.
    'Profit' is a snapshot in time, and doesnt tell you the whole story in isolation. Its just one peice of a bigger picture.

    Blacky
     
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