Dick Smith closes doors: 2,500 jobs gone

By on
Dick Smith closes doors: 2,500 jobs gone

The receivers of Dick Smith have announced the electronics chain will close over the next eight weeks.

The shutdown will see 301 stores in Australia and 62 outlets in New Zealand stop trading, and lead to the loss of 2,460 jobs in Australia and about 430 in New Zealand.

"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," said receiver James Stewart of Ferrier Hodgson.

"The offers were either significantly below liquidation values, or highly conditional, or both."

Dick Smith staff were informed today, with the receivers announcing that all Australian employee entitlements are "expected" to be paid in full. Both store and head office employees would receive "outplacement support", according to the receivers.

[Related: Was Dick Smith set up to fail?]

[Related: Dick Smith creditors could be hanging for six months]

“We would particularly like to thank the Dick Smith employees for their support and patience during the receivership process,” said Stewart, adding that the closure of the chain was "a very disappointing outcome for the employees of Dick Smith, who have given loyal service to the business".

The electronics reseller went into both voluntary administration and receivership on 5 January, struggling with a reported $390 million of debt. The receivers had already shut down 27 David Jones in-store outlets late last month, terminating 181 employees.

Dick Smith established his eponymous brand in 1968 as a car radio installation business in Sydney. The entrepreneur sold his share to Woolworths in 1982, with the supermarket giant selling it to Anchorage Capital Partners in 2012. The business floated on the ASX in 2013.

Only one year ago, the company was celebrating a $56.8 million year-on-year increase in revenue to hit $693.8 million for the half-year to 31 December 2014, with net profit up $25 million to $25.2 million.

Got a news tip for our journalists? Share it with us anonymously here.
Copyright © CRN Australia. All rights reserved.

Most Read Articles

Log In

  |  Forgot your password?