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

    •  

      Thats what I'm interested in knowing. I found when DJ's managed it there was a far better variety and quality of products there. Since DS came in the range is nowhere as good.

      Mind you I got the last of the VT Panasonic Plasma sets which have an amazing picture there quite cheap at the time

      •  

        I just got a VT60 display model for 149 due to the last sale but it has some image retention. Some idiot left the special features screen of a DVD on there for too long, probably when it was still new. Great TV but still evaluating whether the IR is too bad to be my primary. Typically not noticeable watching movie or playing games but on lighter screen it's pretty clear.

        Do you have issues with the iView app? Specifically when you click on a show in a series it always shows the same episode?

        •  

          Was that a typo at $149? I thought I was doing well at $999

          That's the only issue I have with it too is the image retention. The older plasma sets were rock solid and this one and the VT30 and 20 before it same story. I replaced a VT20 with this one

          I have to admit I don't use the smart functions on there. I use Apple TV for Netflix etc and or FOXTEL

        •  

          @chrig: no typo, there was a few people in a semi circle staring at the thing and when I got there and when I asked the price and the guy said 149 I immediately said we'll take it, do you have anything else? The couple beside me literally bought the next clearance TV (which turned out to be the last one) on the spot. Maybe they thought I was be broden. It was display with no box and only remote. Price discounted from was listed on the receipt as 1499 so assuming yours is brand new?

          Is the IR in your case something you bought it with or is it happening as you use it? Mine is quite bad and clear as a bell if you put the scrolling bar on, however only shows up visibly when there are flat light colours on the screen. I've watch entire moves and not seen it or seen it flash up for only 2 sec, but on sitcoms which tend to be brighter you do see it from time to time.

          I have been using a Sony bluray until now and while it takes ages to boot and the interface is looking a bit dated (at least compared to the VT60 apps) it almost never any problems so I am wondering if I should go back. I have a case with Panasonic support but haven't heard back in 3 days, but if you could test this out in case it's just happening to me that would be awesome, I can PM you the process, should take about 2 Min to test.

        •  

          @Jackson:

          That's sensational. What store was that in?

          that's a proper sale. I paid $999 although at the time (mid 2014) that was still considered an awesome deal so I'm not sorry. Mind you that price is out of the world at 149.

          It's happening as I use it. Particularly on pay tv where some of the channels are rather opaque. I have been using conservative setting too on it

          Happy to test what you need. Send me a message and will go from there

        •  

          @chrig: David Jones Bondi Junction, no box, straight off the display, no accessories (and this is supposed to come with a touch pad remote, deluxe remote, touch pen and a single set of 3d glasses) and the image retention. They did give me a smaller remote for another cheaper Panny and it took me a day or two to realise that it wasn't the right one, I did eventually get the right remote off them after asking them to look around but none of the other accessories.

          When I got home the centre pin in the Rf socket was broken, so I got Panasonic to repair it (after some deliberation)

        •  

          @Jackson:

          That's pretty amazing that what I would imagine is one of their more high volume stores that it lasted that long

          In Melbourne there were from memory four stores that had them. I got two for myself and a friend got another and I imagine the final one didn't last long

          In saying that the condition was perfect with all accessories, touch pad and the IR that I have seen on my sets comes and goes depending on the channel watched. If I leave it on a music channel all day the logo from than channel persists for a while longer. The previous Panasonic I had also did this too

  • +3 votes

    Glad I got the eneloops there yesterday.

    • +1 vote

      Eneloops will prevail. :)

      • +1 vote

        I bet the Eneloops are the first things to disappear in any stock clearance :-)

        Ah well, Masters have them I guess..

    • +1 vote

      Me too! A 4 pack of AA Pro and an 8 pack of AAA (chocolate). Ordered it Monday on Click and Collect and picked it up yesterday (Tuesday).

  • +2 votes

    too late for the people that have gift cards, they wont be honored.

  •  

    Are the stores still trading?
    I have an iPhone holder I need to exchange as it is an incorrect model.
    I am hoping they will consider an exchange (definitely not a refund).

  • +4 votes

    Setting aside the annoying recurrence of deal posts, I'd be sad if Dick Smith went under or changed signficantly, both for their employees and because they've been one of the easiest places to get good deals on electrical/electronics in recent years.

    Whenever I wanted a good price on something-or-other, it'd usually be a matter of days before Dick had a cheap price, whereas JB, Harvey Norman, Good Guys etc. were less likely to be discounting any given item at any given time, and have fewer stores (often in less convenient locations). If DSE's existing business model is unsustainable, then I and many others here sure have benefited from it.

  • +1 vote

    Something is afoot

    http://i.imgur.com/74Fr3czh.jpg

    Closing early at 11 in the morning, at the largest shopping centre in the country?

    •  

      Chaddy?

      • +1 vote

        Yeah. Went past it on the way to Kmart. A guy was pulling the door closed. On the way back, it was fully open again. Maybe just testing the door?

    •  

      crosses fingers local Dick Smith is still open after work so can use up gift card

      • +3 votes

        Go in your break if you have any substantial value, don't give them time to find out they are worthless ;-)

    • +1 vote

      The dickkies stores have grown emoji faces! The correct face for the situation

    • +3 votes

      They've probably called a teleconference meeting with all staff to let them know what's going on and take questions. Somewhat common for an administrator.

      Either that or the manager decided to give everyone the rest of the day off.

    • +2 votes

      probably closed the doors so he could put away all the items he wants at the fire sale.

  • +4 votes

    I feel sorry for the staff, the uncertainty :(

  •  

    Does anyone know if this will affect their Move branded stores? I've got a Pebble Time Steel on order and am tempted to try and get a refund before they make it impossible (if it's not too late)

  • -1 vote

    Unfortunately I think it might be too late. Once the Administrators take over they will stop all trading.

    •  

      I find that unlikely. What are you basing that on?

    • +1 vote

      I doubt it. Administrators are there to assess the situation and see what the best course of action is going forward. They haven't had time to do that yet so I wouldn't expect any major decisions until they have.

      That's the whole point of voluntary administration. To avoid crazy knee jerk reactions when companies find themselves backed into a corner.

  •  

    Waiting for confirmation that the eneloops I ordered yesterday are ready for collection.

  •  

    mmmm so the only people that made that much money is the guys that bought it from woolies, about 70mil then stock market for 520mil and now put into shit. i wonder if asic will follow that up. sounds like that company made a shit load of money and crapped on all the share holders. (im not one of them thank God)

    • +3 votes

      I doubt ASIC can do anything. While unethical, there was nothing illegal about the conduct.

      •  

        Yup, iirc this was all the rage in the 80s in the States as shed loads of businesses had assets and capital ripe for the picking.

    •  

      I notice Macquarie shares today are down significantly - not sure if it related or not however I believe they were a substantial shareholder

  • +4 votes

    I think what most OzBargainers are thinking (well at least what I'm thinking is) What will happen to the residual stock, how long does it usually take when a company like this winds up or starts a firesale to clear out inventories? Does it just get bought up or transferred to other retailers first? Does it get sent back to wholesalers? When Dick shuts it's doors this afternoon (this morning by the look of some stores) will it reopen tomorrow, next week or will the sell off of stock be secret/mishandled again? May not be a definitive timeline but just a guideline, looking forward to buying some discounted items (along with many others).

    • +3 votes

      The staff will hog it in one last free-for-all - no one will be looking or even care

    • +1 vote

      Depends on what the decision is at the end of the day - essentially I doubt we will see anything for at least a month as they try and find a buyer for part or the whole of the business. Once this process is complete, anything not bought out will probably be given over to a retail liquidation management business like Hilco (who handled the 100 store closures when woolies put DS up for sale) who generally put everything up to full RRP then start from 5-20% off, then gradually increase the discounts until nothing is left (alongside selling all shop fittings and fixtures and store plant).

  •  

    I forsee anaconda being next. The staff are probably ex ds employees and their stuff is rubbish

  •  

    So I'm guessing that their extended warranties that they were so fervently pushing during the sales will soon be worth ziltch? (not that I took one)

  • +1 vote

    Carn didn't we all know this was going to happen? The fire sale, the cheap crap etc.
    People shouldn't have taken the gift card risk :/

  • +8 votes

    they should probably remove this: https://www.dicksmithgiftcard.com.au/public/buygiftcard.aspx

    selling a product they cant honor.

  • +6 votes

    There is a lot of confusion in this thread about what this actually means.

    Administration basically means new managers (administrators) are being installed to see if they can resurrect the company. It does not mean the company is being liquidated or wound up (although the administrators may decide that this is the best course of action).

    As an example, Krispy Kreme Australia went into administration a few years back. The administrators closed unprofitable stores and made some other improvements. Now the company is trading as normal again.

    So this does not mean DSE is gone. On balance I think it's unlikely that the whole business will be wound up. More likely, a bunch of stores will be closed and the remaining stores will be taken in a new direction. Time will tell though.

    • +2 votes

      correct, but the volume of companies that actually make it out of administration is very low.

      IMO some of the senior management need to be held more accountable for taking risks. They will collect their enormous paychecks and say its because they're under stress and make important decisions but the reality is the most risk they're taking is not receiving pay for their un-taken annual leave.

      • +7 votes

        … and the massive hourly rate charged by the Administrators can quickly use up any available funds.

    •  

      Krispy Kreme still dont seem to be doing well

    • +3 votes

      Administration basically means new managers (administrators) are being installed to see if they can resurrect the company.

      Not quite. The point of voluntary administration is to give the company some breathing space from creditors who are, by this stage, usually beating down the door demanding money. The aim of this period is not to resurrect the company, it's to do the best by the creditors and recover as much money as possible in the most risk-averse way.

      The administrators map out the options and then lay them out to the creditors with a recommendation. It's then the creditors decision as to which option they take.

      It's quite rare that the chosen course of action is to restructure and keep running the company, because that relies on the premise that the company somehow ran into the ground with a relatively sound business model that requires some tweaks. The most often course of action is liquidation (selling everything to recover as much cash as possible to return to creditors).

      The key is to remember that the people calling the shots are the creditors. The people owed money. The more you're owed, the more say you have. Their drive is to recoup as much of their money as possible, they don't give two hoots as to whether the doors stay open or people are put out of work as a result.

      If they think some stores can make more money open than closed, they'll choose that path. If not…well…it'll be total liquidation.

    • +1 vote

      I think there are some pretty big differences though.

      Krispy Kreme had a unique product, there are not many dedicated donut chains around here, and they are part of the huge American chain. They had solid backing, and a proven product line. They might have made misteps in their Australian venture, but they are probably recoverable.

      DSE is just one of the many electrical retailers, one that has just be stripped bare by the private equity group Anchorage. There is nothing unique or special about the retailer, nothing to make it stand above the rest. Well, besides the endless Enelope sales. I just can't see how anyone else will come in, inject funds, and try to actually turn it around. If there was such a group, they would have gotten in before Anchorage did their heist. Therefore, the best option for the creditors, is well, to strip DSE bare, even more so and sell everything off.

    • +4 votes

      The purpose of the administrators is to ensure their invoice for professional fees closely matches the realisable value of net assets in the company under administrion. Trololo.

    •  

      It could end up like Darrel Lea. Or like Ansett.

  • +5 votes

    Doesn't take a rocket scientist to know why they have failed l8ly, bad service, cancelled orders, selling product for under cost. Simply it needs new blood and someone who actually knows wtf they are doing! It's in our benefit for them to stay open as less competition means higher prices

    •  

      True cancelling orders with no explanation. Just received a refund from PayPal no word from Dick.

    •  

      TBH, i thought the service was really good. Obviously it was mayhem during the massive clearance, but I found the staff to be knowledgeable.

      One thing they needed to fix was the online stock level accuracy. This is what caused alot of headaches and frustration for us.

  •  

    can't see gift card option online anymore, site getting hammered.

  •  

    TheAge:- "Ferrier Hodgson said it would not honour outstanding gift vouchers or refund deposits paid for goods"

  •  

    So my partner bought me a pebble with extended warranty, what happens with that extended warranty now? Can I get that refunded?

    • +1 vote

      Extended warranties are a 3rd party and unaffected.

    •  

      I'm not so sure it will be honored …… But you're covered for manufactures warranty for the first 12 months….and you'd have a good chance of enforcing your statutory rights for the 2nd year (Australian Consumer Law 2011). These in-house extended warranties are heavily commission driven (sales assistants receives the bulk of the fee you pay) and are not worth the paper they're written on. Ever wondered why the sales staff are so eager to sell you an extended warranty?

      •  

        Too true. Bought extended warranty from TGG for $60 once, changed my mind then the sales assistant offered it to me for $1. Doesn't matter how much as long as it says they sold it.

    • +1 vote

      Warranty is administrated by external company, The Warranty Group, so it should be fine.

      •  

        From what I've read on DS's warranty policy, looks like they look after their own extended warranty according to their booklet. Just called up my local store at Indooroopilly, Brisbane and they were willing to give me a refund on that extended warrenty.

        http://media1.dicksmith.com.au/get.php/media/wysiwyg/content...

        •  

          Ouch.

          Grab the refund whilst you can! Doubt the administrators will want people getting refunds on warranties.

        • +1 vote

          Looks like, because they use dick smith everywhere. But the actual warranty is through twgau (the warranty group). You can see this on the last page.

  •  

    still no bargain at all..lol

  •  

    whats mean by unsecured creditors? so gift card is useless and cannot get value of it anymore?

    •  

      unsecured creditors = means no guarantee will get anything back.
      according to announcement yes gift cards useless now but see the post says can still use online not sure

      • +1 vote

        Even if it is a secured creditor there is no guarantee of getting 100% of what is owed, it just means you have a charge over an asset (collateral) which reduces your risk if a company goes bust. But if the secured creditors dont get 100% back, it means there is nothing left for the guys behind the line. The hierarchy for payment is secured debt holders (usually the financial institutions) > unsecured creditors > shareholders

    •  

      I believe if they're liquidated, you can make a claim from the money they recover.

      But yes in the short term you have lost the value of it.

    •  

      Valueless at the moment …. obviously that may change, and even in the event of liquidation, you may still be eligible to some percentage of the cards value, but usually only cents in the dollar, never the full value.

    •  

      Creditor means you're owed money by DSE. Unsecured means you hold no collateral for that debt - in other words you have nothing of worth for your debt (just a plastic card).

      In the event of liquidation, small unsecured creditors will be last in line to receive any funds. So you'll have basically zero chance of seeing any significant money back.

      •  

        unsecured creditors will still be in front of shareholders. So technically equity holders will be the last in line.

  •  

    damn got one item still not delivered from mid december purchase. logging paypal dispute now.

  • +2 votes

    What a massive Dick

  • +1 vote

    I've just been reading their Facebook page. Several people are awaiting deliveries from purchases made online on Boxing Day only to be told that no deliveries will be made. Seems like such a stressful situation for those with orders and / or gift cards right now :(

  •  

    Question - David Jones electrical stuff is just Dick Smith - even the receipts from there say Dick Smith. If Dick Smith goes under, how does that affect warranties from stuff bought from David Jones?

  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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