Join Australia's most dynamic and respected property investment community

Dick Smith not sold and is closing stores

Discussion in 'Living Room' started by Chilliblue, 25th Feb, 2016.

  1. Chilliblue

    Chilliblue Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,579
    Location:
    Australia
    All stores excepting airport locations will be closing over the next eight weeks.

    The only good news for the 2,910 Australia/NZ staff is that they will rank as priority in unsecured claims which places them ahead of secured creditors so they should be paid out in full.
     
  2. Simon Hampel

    Simon Hampel Founder Staff Member

    Joined:
    3rd Jun, 2015
    Posts:
    1,655
    Location:
    Sydney
    Disappointing, but inevitable I feared.

    Their strategy has just been too confused in an already crowded marketplace.
     
  3. Azazel

    Azazel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,113
    Location:
    Brisbane
    Not good, those monkeys should face charges.
     
  4. Simon Hampel

    Simon Hampel Founder Staff Member

    Joined:
    3rd Jun, 2015
    Posts:
    1,655
    Location:
    Sydney
  5. jaybean

    jaybean Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    981
    Location:
    Melbourne
    It could have made for a really lean, online only retailer like Kogan.
     
  6. Arnoldus

    Arnoldus Active Member

    Joined:
    20th Jun, 2015
    Posts:
    42
    Location:
    Bargara
    Big props to private equity for getting it away at the price they did, and sympathies for the employees, it's particularly rough losing a job in such circumstances.
     
  7. hammer

    hammer Well-Known Member

    Joined:
    28th Aug, 2015
    Posts:
    417
    Location:
    Darwin
    Dick Smith was an OK business...not fantastic, but workable.

    The problem wasn't the business...the problem was a predatory, yet somehow, perfectly legal Hedge fund.

    Dick Smith disaster in five steps
     
    Perthguy likes this.
  8. mini2

    mini2 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    376
    Location:
    NSW
    Jaycar has proved it the 'old' Dick Smith still works in this marketplace rather than becoming an has-been in pushing appliances/whitegoods. I love they're saying the affected staff will get their entitlements...of course, the worst case scenario is us tax payers gonna fund it.
     
    Perthguy likes this.
  9. BarneyRubble

    BarneyRubble Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    83
    Location:
    Brisbane
    chindonly, Ted Varrick and Perthguy like this.
  10. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

    Joined:
    14th Jun, 2015
    Posts:
    2,105
    Location:
    Sydney & Adelaide
    So as the offers were below liquidation value of stock, the administrators would prefer to close it all down and sack everyone rather than let someone take it over and turn it around and save 2500 jobs. Sounds sensible.

    I know whos getting rich out of the administration and its not the shareholders or suppliers or staff.
     
  11. jins13

    jins13 Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    943
    Location:
    Sydney
    Going to check out the Dicksmith in Parramatta, but I went to the Burwood store a couple of weeks ago to buy some stuff, but they didn't have any stock- GPS, headset and etc
     
  12. beachgurl

    beachgurl Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    455
    Location:
    Sydney
    I bought a faulty GPS from them. It didnt have a cover for the screen so I presume someone else took it back and it ended up back on the shelf. I wonder if this means I'm stuck with it now
     
  13. Ted Varrick

    Ted Varrick Well-Known Member

    Joined:
    21st Jun, 2015
    Posts:
    570
    Location:
    No Mans Land
    How sad for the shareholders, staff and customers.

    A bunch of ex-Myer "managers" (and I use the term loosely, given the outcome...) get to run a consumer electronics firm in a public float by a private equity group, and stuff it full of private label stock that no-one seems to want.

    And Matt Ryan of Forager Funds calls it out like having a loud hailer in a movie theatre shouting "Fire!".

    Can it be described as the biggest pump and dump over the last decade?

    Imagine what would happen if the Proceeds of Crime legislation were extended to a "deeming provision" by the ACCC, so the members of numerous Self Managed Super Funds (aka Mums and Dads investing for retirement..) were compensated by the asset sales(+ 33%) of the proponents of the Product Disclosure Statements (apparently defined as ".. the fat bit in front of the application form"...) when it all turned pear-shaped within, say, 3 years from the float.

    I am both glad I wasn't a shareholder, and also aghast that the basic retail concept of a stock turn didn't seem to be understood, and subsequently addressed diligently, by the overpaid management of this (ex) retail business.

    If only the board had considered replacing the management, and this view may be arguable, by a ham and cheese sandwich, which may have had an equally valid chance of producing a P& L statement that didn't have a minus in front of it.

    What a disgrace.
     
  14. The Y-man

    The Y-man Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    902
    Location:
    Melbourne
    Visited Dick Smith over weekend - disappointing - wasn't much of a firesale. Mostly 20% off inflated prices - the Good Guys next door seemed to be cheaper on some items!

    The Y-man
     
    joel likes this.
  15. TMNT

    TMNT Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    1,396
    Location:
    Melbourne
    I just cant believe that an entire team at a reputable company like Woolworths can buy such a piece of crap

    Just emphasises my disgust and disbelief at how useless corporate and overpaid . Incompetent and entitled corporate management are
     
  16. Simon Hampel

    Simon Hampel Founder Staff Member

    Joined:
    3rd Jun, 2015
    Posts:
    1,655
    Location:
    Sydney
    Hangon - Woolworths bought Dick Smith from Dick in 1980 ... they put it up for sale in 2012 and it was bought by a private equity firm who then listed it on the ASX in 2013 before selling their shares in 2014.

    I don't see how any of this is now Woolworth's fault?
     
    York likes this.
  17. The Falcon

    The Falcon Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    957
    Location:
    Sydney
    WOW was bagged at the time of PE backed IPO for selling the wonderful business too cheap. At least WOW executives have something to laugh about now.
     
  18. York

    York Finance Broker Business Member

    Joined:
    24th Jun, 2015
    Posts:
    1,621
    Location:
    Sydney
    Did the same thing. Thought i could get a printer cheap. They were still more expensive than JB around the corner. No one else seemed be think they were cheaper either. I was thinking only person in there. While JB was packed.
     
    Leo2413 likes this.
  19. Simon Hampel

    Simon Hampel Founder Staff Member

    Joined:
    3rd Jun, 2015
    Posts:
    1,655
    Location:
    Sydney
    I read that the real discounting isn't supposed to start until this Thursday.

    PSA: The Best Dick Smith Deals Won't Appear Until Thursday | Lifehacker Australia

     
  20. Chilliblue

    Chilliblue Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,579
    Location:
    Australia
    You have recourse from the manufacturer