Dick Smith Enters in Liquidation, Closure of Stores / Closing Down, Sales

Dick Smith shares are now in a trading halt with an announcement on debt financing due by Wednesday.

More bad news for Dick.

http://www.smh.com.au/business/retail/dick-smith-shares-ente...

Get the bargains whilst they last because I can't see Dick Smith existing much longer.


Recent Updates:

Discounts via BI:

Apple products, including iPhone, iPad, Apple Watch: 5%
Apple cables: 30%
Game consoles and games: 20%
All TVs: 20%
Samsung phones, tablets and TVs: 20%
All Smartphones (Except iPhone): 20%
Laptops: 20%
Microsoft, including Surface products: 20%
Drones: 20%
DSLR cameras: 20%
Headphones, including Beats: 30%

Older Updates:

Comments

  •  

    Off she goes….Stephen Mayne reckons this may be the end. https://twitter.com/MayneReport/status/683806124324204544

    • +3 votes

      I have a $50 gift card for dicks that I tried to redeem today in store. They told me "sorry no gift cards are working". I said just this store? And they replied with every store the gift card system is down!

      • +3 votes

        I read somewhere that you are one of those in a horrible sinking ship. They said you are placed in the pile with manufacter debts and customer orders awaiting deliveries (which will probably never arrive). Any chance you still have the receipt? or can source it? otherwise, go to your bank with the CC you used for the gift card to dispute it.

        Good Luck!

        •  

          @Cyphar: some do, others don't its an OzBargain community here mate, if there is personal gain in buying via gift cards, then we are onto it. What point are you trying to prove with your statement? If he/she didnt buy it for themselves, then hold onto it, it was gifted so its no big loss, if they bought it for themselves, then fight for it…

      •  

        hey theres an update above saying gift cards still work online…use it quick befroe they stop honouring them

        • +1 vote

          Will online orders be fulfilled though?

        •  

          @Quotationz: Idk, people on these threads are saying they are processing, but whether you play it safe and buy things you know are in stock or buy to order products is up to you….Or maybe hold onto them and see what comes out of this

        • +4 votes

          @Quotationz:

          I work for a major logistics chain and they have ceased all pickups and deliveries for DSE. That includes all deliveries they already had that were ready to go out. I believe these are going back to DSE.

        • +1 vote

          @xconcepx: makes sense. Logistics companies would be a creditor to DSE, and would later bill them for the deliveries. So unless DSE prepay for their deliverives (highly unlikely), companies like yours will refuse to perform any deliveries. Your company and others will be owed money for services provided to date, and will be scratching at the receivers to claw back cents on the dollar.

          Same principal for pre-order or goods not in stock, the manufacturer/distributor isnt going to provide them to DSE as there is no guarantee of getting their money!

          Best of luck for anyone in these situations!

        • +1 vote

          @geoffs87:

          All back to normal. Business as usual.

      •  

        malvern accepting them today

        •  

          They accepted gift cards today?

        • +1 vote

          I went there today. It was good they accepted them although I really struggled to find anything to buy

          Nunawading flat out refused although at least had some good stock

      • -5 votes

        I would walk in when its most busy, find that $49 tablet, take it out of the box, (dont need charger)
        and just put tablet into pocket, and buy a pair of $6 head phones, go to counter, so then you at least walk
        out legit with a sales bag. Screw em if they screw you.

        Its not theft if you gave them $50 is it. F-em.

      •  

        its illegal for them to pay you, if they are in involuntary administration, but if they traded whilst insolvent which seems the case, they committed an act of fraud

      •  

        I read that you can use them in Coles

      •  

        Coles & Woolies are now offering their gift cards in exchange for DS cards, but i think you have to have bought it in their stores. The full article is here:
        http://www.smh.com.au/business/retail/coles-to-exchange-dick...

      •  

        not meaning to be rude, but WHY would you have waited until now to redeem it?? I would have gone straight to Woolies/Coles and had it exchanged. Or spent it weeks ago

    • +4 votes

      Dick Smith Receivers say gift vouchers and deposits will not be honoured
      http://www.abc.net.au/news/2016-01-05/dick-smith-receivers-v...

    • +3 votes

      Called it a while ago have a read of this one from Matt Ryan from Forager. A little conceptual, but worth the read.

      Dick Smith is the Greatest Private Equity Heist of All Time

  • +12 votes

    Get the bargains whilst they last because I can't see Dick Smith existing much longer.

    Or wait till the receiver is appointed and they dump all stock.

    • +4 votes

      I'd say they'll try to sell sites individually with stock first, then if no takers the individual store stock will be dumped to recoup what they can.

      Most of their stock is useful stock, it's just their systems/processes that suck beyond repair.

      • +2 votes

        Most suppliers have a clause in contracts Romalpa Clause that the stock remains the property of the supplier until it is paid for.

        DS had been pushing for extended payment times from their suppliers.

        So now that DS has hit the wall, suppliers will grab their stock back i.e all the good stuff, leaving only the rubbish for sale.

        • +2 votes

          suppliers in recent weeks have allegedly become worried about getting paid and some have even begun demanding cash on delivery businessinsider

        •  

          Depends on the supplier. If they can get a good tax write off from the ATO they probably won't bother retrieving stock.

          As for the stuff left it will be stuff that they cannot resell to other retailers such as The Good Guys, Harvey Norman or JB Hi-Fi like ex demo TVs and laptops left on 24/7 in store for the last six months.

        • +1 vote

          @Mr Rort: Nah, if the stock is subject to a Romalpa, then in all likelihood they will have registered their security interest on the PPSR. The administrator/receiver is bound to make enquiries of those security holders and arrange for the return of the goods, and if sold, to remit the proceeds to the supplier.

        • -1 vote

          No they don't… What planet are you on. Firstly even read the wiki you cite? In contrast to English law,[6] the common-law jurisdictions in Australia, Canada, New Zealand and the United States have instituted the concept of "security interest", under which ROT clauses may need to be registered in order to have effect.' Secondly ever thought of the transaction costs involved in doing this on every transaction for a regular customer? It does not make financial sense. Further what if the goods are sold by Dicks - but payment not made? They will not be able to trace the goods. From memory registered interests fall after secured creditors - and so even if they did have a registered interest (unlikely) they are unlikely to get paid.

        •  

          @Wallyt99:

          When it comes to information about a specific legal situation I would not trust Wikipedia.
          The article is very vague and hence unreliable: "..may need to be registered…" for example.
          The English law bit is also not accurate.

          Do NOT rely on Wikipedia.

  • +63 votes

    More importantly you should get out and use any gift cards if you have them, they sometimes don't let you use them if the company goes into voluntary administration

    • +4 votes

      This x 1000%. Remember the Borders saga… avoid avoid avoid

      • +3 votes

        How on earth did Borders go broke when they were selling books at triple the market price and always seemed to be be busy?

      • +2 votes

        If I recall, Borders required shoppers to spend twice the value of their gift card in their dying days….. if you had a $50 card you'd need to buy $100 of stock, and pay half in cash. And then I think they stopped accepting gift cards all together.

        So good advise from "tissue" …. get rid of them now to be safe. These things tend to go down hill very quickly.

        EDIT: Dick Smith will no longer honor gift cards

        http://www.dailymail.co.uk/news/article-3384463/Is-end-Dick-...

        • +12 votes

          Why is half our news coming from UK sites these days? (Aside from the obvious fact that our media are useless and focus on gossipy clickbait)

          I think I just answered my own question. But do they have journalists on the ground here, how does that work?

        • +1 vote

          @LoopyLou:

          Not sure, I only read ABC.net.au news …. but that was just a site that popped up when googling news about vouchers.

        •  

          Why would anyone chose to do that? You aren't getting any value from your gift cards then.

        • +4 votes

          @LoopyLou: Because the Daily Heil does gossipy clickbait far better than any Aussie media organisation, and because The Guardian does news reporting better than most Aussie media organisations.

        • +2 votes

          @theguyrules:
          You're got $100 value for $50 cash..
          The gift cards were worthless after a certain date, so you were effectively getting stuff for half price (even though the other half had been paid for..) This is why I hate Gift Cards, not only do they restrict you to buy from one place, they're also useless if the company goes bust.

        • +1 vote

          @LoopyLou:

          Why is half our news coming from UK sites these days? (Aside from the obvious fact that our media are useless and focus on gossipy clickbait)

          Because people in this country (not OzBargainers) are idiots who buy up gossipy clickbait.

        •  

          You are correct. If my memory serves me well it was spend double and get full value. After that it was 70% value on your gift card (spend double) and towards the end. Bad luck line up like all the other creditors and receive nothing.

        •  

          @scubacoles:
          Oh duh. I am a bit slow before lunch lol.

        •  

          @LoopyLou: daily mail is great for Aussie stories, Honestly they should come and replace our local papers, they are full of crap anyways. RT also covers some Australia and NZ stuff and generally just shows how Bias our media is

        •  

          @LoopyLou: I was at a function a while back and met a couple of blokes working for the Guardian, but not sure if they were freelancers who got lots of work from them or if they were permanent staff

    •  

      Very good advice! If an administrator is appointed one of the first actions will be to freeze all returns, credit and voucher redemption.

    • +1 vote

      This is good advice. The possibility of Dick Smith going into administration was the main reason why I did not purchase any Dick Smith gift cards the last time they were discounted.

      The chance of not being able to use your Gift Cards if under administration is very high, and you are not going to be able to get your money back as you would rank as an ordinary creditor and would not likely see any return.

    • +5 votes

      More importantly you should get out and use any gift cards if you have them, they sometimes don't let you use them if the company goes into voluntary administration

      Whoop, too late!

      http://dicksmithholdings.com.au/wp-content/uploads/2016/01/P...

      •  

        Sorry, 24 hours notice was all that I could give. First thing I did when I read the news articles about it was to come straight here and tell people to go out and use their gift cards ASAP.

        I feel sorry for people left with gift cards, but you should have been nervous when they do stupid fire sales anyway. I feel worse for the employees however, no matter how rude or whatever they may have seemed on any day someone went.

    •  

      He also stated that due to the financial circumstances of the Group, unfortunately, outstanding gift vouchers cannot be honoured and deposits cannot be refunded. Affected customers will become unsecured creditors of the Group.

      From the Receivers

      •  

        That should be illegal, they already got the cash, how can they do that.
        Its pure theft, and should be illegal, execs go to jail.

        F-em, and walk in store, and steal some sh1t.

        •  

          I'm guessing you have some cards or bought them?

          should it be illegal? maybe…
          theft? hmmmm…it is not right maybe.

    •  

      I tried to use my gift card today and they said the system is down

      •  

        how much gift card did you have?

        • -13 votes

          i got told they're not accepting them anymore.

          they said some form of 'refund procedure' would be made public later on today.

          the store manager wasn't impressed when i told him to go get my money out of the till now

        • +38 votes

          @timewasting:

          the store manager probably has bigger concerns than your gift card, like his own employment situation. no need to give him a hard time when hes not to blame.

        •  

          @berger:

          yer i do realise that.

          so why would he still care about the company policy?

        • +8 votes

          @timewasting: He needs to keep his job for as long as possible, so he has time to find a new one…

        • -3 votes

          I don't understand why employees believe that if they keep following company policy and direction, the company will look after them until the very end.

          If a dick smith retail assistant was still processing gift cards the higher ups wouldn't bat an eye lid at it. They'd be too busy figuring out how the guys at the top can pillage all worth from the company and get away with it whilst everyone else is left in the doldrums. If my dick smith gift card wasn't honoured…I'd just walk out with the product…any employee that is scared of losing their crap job is definitely not one to have the courage to stop you.

          I don't buy into this system is down bull shit. That's just corporate jargon for 'the system still works, but you better not use it or you'll be in big trouble'.

        • +10 votes

          @docholliday:

          That's stealing mate.

        • +1 vote

          @skazclaw:

          I more like to think of it as a lien. Holding onto goods in lieu of payment.

        • +1 vote

          @docholliday:
          More like a reverse lien ;-)

          They've got your 'payment', so you're asserting your rights to their property. I don't like your legal case. Creditors before you have had a bad time claiming their rights in cases of bankruptcy.

        • +8 votes

          $50 - Funny enough after all the Dick Smith sales my girlfriend thought I really liked the store. So she brought me a gift card for Christmas…..

        • +2 votes

          @Infidel:

          I'll take my chances that the situation wouldn't satisfy the DPP's criteria in warranting a case.

        • +1 vote

          @timewasting:

          the store manager sounds like a professional till the end.

          I've know some people that will take advantage of the situation. One of my friends from the One.Tel collapse signed about 100+ contracts and physically checked out 100+ phones before administration. Those phones belonged to Telstra and no way for them to chase him up. Ending up selling them on Yahoo Auctions….

        • -1 vote

          @timewasting: username checks out, it's not the manager fault

        •  

          @skazclaw:

          Not if you have the gift card as proof, that you paid them the cash!
          Other wise DS, is stealing from you.

          Which is it?

        • +1 vote

          @pegasusx:

          Friend of mine had $4000 bill from onetel, that he never paid back, they just eventually gave up chasing.

        • +1 vote

          @skazclaw: and they have cameras, and you could end up prosecuted with a record. How much is that worth?

        •  

          @pegasusx: there was a 4 phone limit, but ppl were signing them to their friends

        •  

          He was a manager so I assumed thats where he exploited it. Signed up half of Chinatown….
          @Jackson:

      •  

        See I think this is rubbish. At Nunawading the system would accept ten it was that the staff were unwilling to process. They said there was an email that was sent today saying not to accept gift cards

        At Malvern they tried and it went through without a hitch.

        • +2 votes

          It works everywhere. Upper management has just told the dick smith lemmings not to do it and has them scared…They're going to feel real shafted when they don't get their annual leave or other benefits paid out.

        • +2 votes

          @docholliday: But what do the staff gain in disobeying their superiors?

        • +2 votes

          @sparky13:

          They gain by mitigating the potential assaults or torrents of abuse hurled at them from consumers that can't use their gift card. They may even circumvent the guilt spawned from being so unethical in lying to customers regarding the situation that ultimately doesn't benefit them.

          Had worked in retail long enough and experienced enough to know that my generosity in honouring refunds or exchanges was never questioned, I even got bonuses. I think customers were more in awe that they didn't have to finish their ridiculous 'refund or exchange story' for me to just do it, sometimes I just offered it straight up to them, mouth usually agape from their end. I called it 'my path of least resistance' and this attitude is what made the retail environment much healthier and easier to be at for me. If my refund was ever questioned by management…it was usually benign… a simple playing dumb and saying as little as possible and knowing how to navigate retail politics never made me look like a company dissident.

          Feel sorry for those in retail today that have such strong company loyalty at the incentive of 'being scared of losing your job', when the company does not see you in the same light.

          Maybe they gain nothing, but the endpoint is going to be the same by obeying the dubious demands barked at them in an email. Nothing.

        • +1 vote

          @docholliday: You sir are a retail hero. I managed a phone shop and took the same approach to customers for 6 years, if we were arguing with a customer in store we weren't concentrating on winning new customers. My store was regularly the highest performing in the state and a couple of times the highest performer nationally. All my staff were taught to do the same regardless of what head office wanted (and in fact we were far more often praised for our record and almost never reprimanded).

          The stores that rigidly gave the customers the wrong end of the stick by strictly following official policy had worse results and less enjoyment and definitely gave lesser customer service (& had much higher staff turnover).

        • +3 votes

          @docholliday: https://www.employment.gov.au/fair-entitlements-guarantee-fe... — employees will be paid their annual leave…..

        •  

          @lukeghulm:

          Haha I just figured out the lore of the land early. The retail assistants were so worried about keeping their KPI's for the day they lost sight of the long term goal. They would refuse to give refunds like it was their money or product they didn't want to give up (this is so mind boggling). The resulting argument itself was enough to change the vibe of the store and leave a bad impression for every other customer that was present. If the customer complained enough anyway, corporate would yield, and by that time, the damage done is much worse.

          Like you said, it was just efficient to just put it through and focus on other clients. No-one had to worry about their safety or their mental health. Dollars to donuts a lot of staff knew the impending doom that surrounded Dick Smith, if I worked there I'd flat out be telling customers not to buy gift cards and I'd be redeeming the ones that people were trying to redeem.

          It's not what most people to do, but I learnt early on to never highly leverage my means of living working a crap unstable job doing the hand to mouth thing (and no I didn't live at home having my life underwritten by my parents). Then I didn't have to follow instructions that didn't agree with me….it was liberating to deny requests to work longer or at short notice with reasons like 'Because I don't have to or need to.' Funny thing was, I never lost a job and I have 3 glowing references from people that actually matter. Oh, and my store made 10% on last years lofty figure ;)

          @kipps:

          Hopefully, but some rules just can't be enforced. Can't get blood from a stone and all that. EDIT: Sorry mate, just read the legislation. Hopefully if there are any burnt employees, they actually pursue these rights.

        •  

          @docholliday: Employees get all benefits bar super paid out by the department of employment. Look up Fair Entitlements Guarantee.

          Any statement about them getting shafted is wrong.

        •  

          @nultma:

          You're lagging man…already discussed the FEG

          edit: Thought I'd add that if the staff aren't paid their entitlements, they're going to have to wait months and months to receive recompense from the government through the FEG.

        •  

          @nultma: Super is meant to be paid quarterly, so hopefully their super is paid up at least to September. Still a loss if Dec qtr not paid, but shouldn't be years and years missed.

  • +5 votes

    Not particularly surprising given the pre-Christmas sale bonanza!

    • +2 votes

      An alternative explanation is management saw the writing on the wall and wanted to clear the old stock overhang to make the company more palatable to potential buyers or Angel investors. Better to get a couple of dollars and the customer takes it away than spending dollars putting it in landfill.

  1. tissue on 04/01/2016 - 11:44
  2. the-mal on 08/01/2016 - 09:45
  3. berger on 05/01/2016 - 15:15
  4. fruit on 04/01/2016 - 13:23
  5. emmett1 on 04/01/2016 - 16:50
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