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

  •  

    Are the stores still open ?

  •  

    If they are still trading, they will have to continue to honour outstanding orders otherwise no one would buy online. Just got in with my gift cards so have my fingers crossed!

  •  

    dammit, why didn't I see this yesterday, can't use my gift cards online, is it the same in store?

  •  

    If you purchased your GC with credit cards, you could possibly do a charge back

    •  

      yes, same if you bought them online through PayPal.

      •  

        Two (out of 3) of mine were from Coles during one of those 10% extra value deals several months ago. But one was bought directly online with DS - will check how I paid!~

        update: I did trace back the 1 GC purchase but I've used 70% of it's value, I don't think I can do a charge back

        •  

          Maybe you can still lodge a disputed transaction for the remaining 30%?

        •  

          @inherentchoice:
          I think I'll just write it off for now. The total I have is about $80 but I'm not $80 out of pocket.

          All 3 cards were bought either discounted or extra value loaded. Plus there were two errors which resulted in, 1. not enough credit deducted and 2. $10 cash refund given in store. Plus I also used my mates rates $10 on one of the gift card purchases…

          I estimate only about $20-30 out of pocket.

          I can keep them as a reminder, to not endulge on too many gift cards, in future!

  •  

    Who actually owns the stock in the David Jones stores? Wonder what will happen with them?

    •  

      Dick Smith does, they purchased all of DJs old electrical stock when they started running the department.

      My bet here is that the agreement that allows Dick Smith to run their concessionaires in DJs will be terminated/voided very quickly and the stock will be moved out literally overnight.

    •  

      Had a chat to the young lad working in DJs Brisbane. He confirmed that he's employed by Dick Smith.

      Wonder if DJs will assist if I have any issue with the Samsung Tablets I bought? The lad said I would deal with Samsung directly.

      •  

        The receipts for the David Jones concessionaires have David Jones brand and ABN on them. They'll be obligated to help regardless of the existing business arrangement going sour/DS potentially going out of business.

  • +5 votes

    good luck to this person

  • +1 vote

    As I said just before Xmas, your gift vouchers and warranties from Dick Smith will be worth dick within 3 months

    •  

      Warranties are provided and honoured by third party as stated multiple times in this post. :)

      •  

        You are a fool if you think warranties on most Dick Smith branded products are going to be honoured.

        Sure if you bought a Sony TV from them, there won't be an issue.

        But if you have a Dick Smith branded TV, kiss your warranty goodbye…

        Extended warranties will be honoured by whoever underwrites them - it appears that isnt Dick Smith - if you have one, hope its not…

        https://www.ozbargain.com.au/node/223201?page=2#comment

        •  

          Of course warranties covered by DS on DS manufactured electronics won't be covered if the company liquidates and ceases to exist.

          But all extended warranties on all goods and all normal warranties non-DS branded goods purchased through DS will be unaffected. That would cover the vast majority of goods I'd say.

        •  

          Lucky I didn't buy any crappy DS branded products.

        •  

          @the-mal:

          If you look at the link above, many mush-minded fools on OzBargain don't understand the concept of warranties not being honoured.

          The same people believe ICE TV V2 will be trading in a years time and that Santa delivered their presents.

          Extended warranties underwritten by a member of the Dick Smith group won't be honoured - you'd have to check who it is underwriting your specific warranty to know…

        •  

          @the-mal:

          Why would extended warranties be honored? Does the manufacturer get a percentage of the profit of every extended warranty sold?

  •  

    I just tried to buy something online, and they have removed the gift card option for payment

    • +3 votes

      I wouldn't buy anything online from DSE. If you don't hold it the moment you hand over your money, you don't own it.

      • +2 votes

        I wouldn't buy anything online unless it was using a gift card. They're essentially worthless now anyway so it's worth taking the risk. But I definitely wouldn't be risking purchasing online otherwise.

        If they've cut off the gift card option online then I'd definitely steer clear unless you're in a store physically handing over cash for goods.

  •  

    I don't understand how Dick Smith could go under. Nick Abboud, CEO, was paid $1.2 million in 2014. Surely that's enough to attract the 'best and brightest' to the business and run it well? Maybe their fatal mistake was not paying five or even ten million…

    • +5 votes

      Yeah Nick Abboud - he is world famous as being such a great CEO

    •  

      The winners are Anchorage Capital, big losers Mum and Dad investors.
      Perhaps there will be a class action lawsuit if evidence is shown AC acted in devious means.

      • +6 votes

        Perhaps there will be a class action lawsuit if evidence is shown AC acted in devious means.

        They really didn't though. What they did was quite straight forward in retrospect. And there aren't any laws against trying to put lipstick on a pig when preparing to float a company.

        Of course they knew what they were doing, and they were absolutely profiting from the ignorance of others. The ethics are shady as all hell, but it wasn't in the slightest bit illegal.

    • +5 votes

      He is an ex-Myer man…I think that already explains a lot questions.

      And if he was paid $10 mil, Dicky would have gone under sooner.

  • +3 votes

    it's heartbroken reading about this. A lot of good people will lose their jobs and put Australian economy at risk. I hope a lot of us in the futures put a lot of supports when buying any products from any good companies such as our Australian retail stores.

    • +7 votes

      and put Australian economy at risk.

      They employee around 3,300 people spread geographically around the country. It won't even register as a blip on the radar for the economy.

      Devastating for the families who could be put out of work though.

      •  

        if you multiply 3300 x $500 (average income per week) is $1,650,000. This could sound an alarm in the long run.

      •  

        When the stores close other businesses (possibly including new businesses) will move into the premises and create new jobs.

  •  

    Anyone knew what would be happening if I bought something from DSE during last couple of months and looking for a TRS claim near the future?

    • +5 votes

      Shouldn't make a difference. You paid the GST already, that money is with DSH if not already with the ATO. It's up to the ATO to recoup it from them.

    • +2 votes

      As above, you paid the GST, you have the receipt to prove it, you get the GST payment back. Enjoy your travels :-)

  • +8 votes

    Surely DickSmith should now be banned from OzBargain? i.e. People may order stuff online and never receive it depending on what happens to the company.

    If nothing else…They have acted dishonestly by selling gift cards over Xmass then basically voiding them straight after.

    • +4 votes

      Many bought those Gift Cards & used straight away, scoring a good deal. Sad for those stuck with worthless souvenirs of being Dicked one last time.

      It's unlawful if it can be proven management was trading (& providing credit they knew was potentially worthless) while insolvent. That doesn't seem to be the whole case, they just couldn't afford to restock & had little left to sell after the fire sale.

      Honesty is a different matter.

      Unfortunately businesses do sell discounted credit to raise money in troubled times. If it works, everyone is happy, but if it fails…

    • +4 votes

      i would imagine once the inventory liquidation occurs there will be serious bargains to be found though.

      • +2 votes

        yay 2nd fire sale!

        •  

          When they had the last fire sale I scored old packaging 32GB DSE USB sticks for $2. Now they can throw out their new packaging at the same price.

  • +14 votes

    How convenient on Dick Smith's behalf though. Stay open over the christmas period when gift card sales pickup, wait until holiday season is over, go into receivership, cancel gift cards. Money for nothing.

    • +1 vote

      Welcome to a world run by private equity. Sure, Anchorage may have sold most of it… but the management was still theirs.

    •  

      This is why you never buy gift cards under any circumstances. You are better off just giving cash.

  •  

    Sorry if posted already, just went to DS Hobart CBD and they are asking to call the 1300 number on DS Gift card. The lady mentioned they have been asked not to accept the GC anymore. Was funny she said telephone lines were down as I was trying to reach them on phone since morning. Anyone has any idea if we have any chances of getting our DS gift cards honored.Thanks

  • +1 vote

    Just rang up my local Dick Smith. Was told that they will be provided with a phone number on Wednesday afternoon, in which we can call and sort out a refund for any gift cards (regardless of how they were purchased).

    •  

      Sounds good.

    • +12 votes

      LOL good luck with that - administrators won't allow it…

      Tooth fairy is coming Wednesday night too!!

    • +3 votes

      There will be no refund of gift cards. You can join the back of the que as an unsecured creditor but you will be wasting your time. Lenders and ATO are first to get their money and then the administrators and receivers will gobble up whatever money is left as fees

  •  

    I used gift cards to make some purchases on 31/12. Will they still honour it?

  •  

    JB Hifi and Harvey Norman execs have wood thinking about acquiring the remaining Dick Smith stock at 5 cents in the dollar.

  •  

    Sooo does this mean they will be having another Fire sale where we can get struggle to get any decent items ebcause they all dissapear off the shelves magically the day before the sale?

    MIghht have to call in sick the day it starts and go around trying to get some bargains if they do.

    Wouldn't mind a new TV (probably wouldn't be able to get a new monitor)

  • +8 votes

    This is confusing. It seems like the directors of Dick Smith appointed 'McGrath Nicol' as administrators on Tuesday morning and then almost immediately a 'syndicate of lenders' placed the company into Receivership with 'Ferrier Hodgson.'

    Therefore some news outlets are getting it really confused by saying that Dick Smith was placed into 'Voluntary Administration' with 'Ferrier Hodgson' but according to the announcement below it is a Receivership! The two are very different.

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

    If the company is in receivership it is really bad news. The banks have had enough, taken over control from the directors and now the first priority of the receiver is to get the bank their money.

    This is a mess and it stinks. What have the directors/board been doing to let it go this far?? The directors did not voluntarily hand the company over to an administrator, or perhaps they wanted to look like they did with that McGrath Nicol announcement to use as a 'get out of jail' card later when the dust settles to say "See! We did identify that the company was about to go bust and appointed administrators but unfortunately for us the bank simultaneously appointed a receiver"

    •  

      One possible (potentially wrong) interpretation of the stuff flying around at the moment is that that Dick Smith saw the writing on the wall and put themselves in voluntary administration before the banks had a chance to get in first with receivership. Then somebody leaked the receivership to the papers before Dick Smith's administrators had time to put their stuff into place.

      Something like that would seem a lot like normal corporate legal and PR dickwaving to me, with nobody looking like a winner.

    • +5 votes

      McGrath Nicol were appointed Voluntary Administrators over the Company by the directors. Ferrier Hodgson were appointed Receivers and Managers by the Secured Creditors. What that means is that FH will reclaim and sell any secured assets to recover as much as they can for the Secured Creditors. Since the assets were secured they weren't the property of Dick Smith anyway. MN will handle the the Administration of Dick Smith, e.g. trying to determine remaining assets available and deal with the remaining creditors.

      •  

        So the company is in Voluntary Administration AND Receivership.

        • +10 votes

          Receivers just look after those who appointed them (in this case, the banks no doubt). Administrators in a voluntary administration look after all creditors including unsecured ones.

          VA is brought on by the directors (company-side) and receivership is brought on by the creditors (creditor-side).

          If banks have a lot of skin in the game they're likely to throw their own receivers on the case to make sure they get paid first and the most possible.

          A company can be in both receivership and administration, or can also be in receivership and liquidation.

  •  

    What's going to happen to David Jones's powered by Dick Smith?

    •  

      David Jones was never making money in their electronics area anyways.

      They would probably just wrap it up.

      So glad I returned my David Jones bought - Bose Soundbar before this debacle happened. (It had issues playing over ARC)

    • +3 votes

      Three things may happen when it comes to David Jones.

      1) DJs resells the electronics department to JB Hi-fi or Harvey Norman.
      2) DJs stop selling electronics.
      3) DJs reverts back to in-store electronics department prior to Dick Smith sale.

      •  

        DJ's should just give it up. The consumer electronics market it is competing in does not fit the posh, suit wearing DJ's business model.

        •  

          At the very least, DJ's target market would buy enough Apple products to justify carrying them.

  •  

    According to this story anyone waiting on items they've ordered is out of pocket:

    http://www.news.com.au/finance/business/retail/dick-smith-cu...

  • -3 votes

    http://www.smartoffice.com.au/business/retail/81H18UTA-dick-...

    How will you generate cash when majority of good deals were taken by their own staff before it can reach to consumer and bring more money in.

    • +2 votes

      That doesn't make any sense. They generate the same amount of cash whether a customer buys it or staff members buy it.

      • -1 vote

        Staff get extra discount on items.

        • +2 votes

          Staff discount isn't much. When Woolworths owned it, it was 5%. Hardly going to be the cause of their downfall. The bad press, pissed of customers, etc would certainly do it though. (just saying, its not a /cashflow/ problem because staff bought over customers)

  •  

    Should have seen it coming from the previous firesale ~ guess its a good time to pick up a new tv

    •  

      Name brand highly recommended! Stay well away from their home brands unless you want a paper weight if something goes wrong.

  • +4 votes

    just got my deposit refunded in-store. system wasnt allowing it, manually overide worked

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