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

Lthe-mal on 04/01/2016 - 11:21
Last edited 02/05/2016 - 15:37 by 3 other users

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:

General Discussion

Related Stores

Dick Smith / Kogan
Dick Smith / Kogan
Marketplace

Comments

      • wildstone on 05/01/2016 - 17:30
        +1

        And what about pending processed orders made before liquidation? Can they just accept the money (or gift card) and then say no we are not going to deliver it? Seems like theft if that is the case.

        • Coops1 on 05/01/2016 - 17:39

          They can…… :(

        • INFIDEL on 05/01/2016 - 18:15
          +1

          "theft" - this is a civilised country, its called the Corporations Act & protects (big) secured creditors & government first. Get in line - the end of the line for unsecured creditors :-(

          According to the ACCC - they can.
          If paid by CC or PayPal, make a claim. Gift Card - oh well.
          But people may be lucky.

          Also those with refunds will likely lose out.

          Its easy if you are not affected by losses - so I sympathise with those affected.

    • chumlee on 05/01/2016 - 17:52
      +1

      Receivers are put there by NAB and HSBC and are only interested in getting their money back. They are not interested in brand reputation of Dick Smith.

      • [Deactivated] on 05/01/2016 - 21:48

        People should write to their local Federal/State member of Parliament asking

        a) Why there is no mandatory legal requirement on Layby conditions or Gift Cards to specify that if the business goes bust a customer will lose part or all money paid to the retailer?

        b) Why banks (who already have favourable terms when it comes to law) are given preference (over shoppers) when a business fails? Considering the banks receive more information than the general public and in most cases their losses are due to reckless lending.

        c) Why there are not safeguards in place to ban the sale of Giftcards and Laybys when it comes to a public company when their share price falls dramatically?

        • INFIDEL on 05/01/2016 - 22:06
          +1

          You didn't know DS had financial difficulties?
          Warnings have been issued many times on OzBargain about the risk of gift cards if a business goes under.

          We're a highly informed community, probably more so than under your warning system, so no one here would have taken any risks & got caught with worthless gift cards??

          Better tell people that smoking may result in health problems too. Obviously no one has told the public about that, otherwise no one would still smoke!

  • whodidthat on 05/01/2016 - 17:03
    +1

    Just been thinking, ebay ain't gunna be happy!
    They went out chasing the big guys, now one of those big guys has fallen over.
    Wonder if they'll get paid this month!

    • Buy1tN0w on 05/01/2016 - 17:18

      Maybe there is a term and condition in eBay or cash rewards were they do not have to pay rewards if they miss out?

      • INFIDEL on 05/01/2016 - 17:21

        CashRewards pay out after receiving payment from site, as I understand. That's why it can take months. Would you pay out if you haven't been paid?

        • Buy1tN0w on 05/01/2016 - 17:22

          Agree, think those rewards are gone too

    • barginhunter11 on 05/01/2016 - 17:24
      +2

      Ebay makes enough monies as it is

    • [Deactivated] on 05/01/2016 - 22:03

      Not that its much to eBay but they get $499 per month and then 8% of their eBay sales..

  • love2buy on 05/01/2016 - 17:16

    Funny their ads are stilling playing on 2gb radio.

  • StonedWizard on 05/01/2016 - 17:21

    I wonder if they'll have another fire sale or eneloop deal.

  • barginhunter11 on 05/01/2016 - 17:23
    +2

    I popped into the Victoria Point QLD store .
    There was a irate lady having a go at the staff.
    There was nothing there of excitment , no one else in the store.

    May as well shut the doors now

    • Davo1111 on 05/01/2016 - 17:32

      when borders shut down, the place was packed with customers.

      • [Deactivated] on 05/01/2016 - 22:10

        People love a bargain.

        Officeworks is one of the best stores when it comes to stock control. They don't keep crap sitting around and by doing so they keep the store fresh and exciting.

        The idea of buying stock and letting it sit for years has far gone. If you are a retailer in Australia you need to buy stock at levels you can move within a year and discount heavily and quickly if there is a slump.

        DSE problem was a combination of inexperienced staff, being overstocked, wonky online sale promotions and having too many locations.

        IMHO Brick and mortar retailers continue to fail winning over customers because they don't capitalize on their strengths such as face to face interaction, product knowledge and allowing a customer to touch, feel and operate an item.

        It is laughable that in 2015 stores like JB Hi-Fi don't offer a listening kiosk in their stores or provide music samples of the CDs they sell on their website. These are the same retailers who then complain that people don't buy from them and buy from iTunes instead (where a track preview is available).

    • Flowerbomb on 05/01/2016 - 17:34

      What was that lady angry for? Gift card related?

      • barginhunter11 on 05/01/2016 - 19:36

        Yup.. she was unaware (what she claims) and they denied her purchase , the staff member was stating that it was all over the news and nothing he could do

        • Flowerbomb on 05/01/2016 - 21:09

          Can't blame her. Staff are copping the flag though when it should be the management receiving it.

        • barginhunter11 on 05/01/2016 - 21:45

          @Cronut:
          Manager probably quit haha

  • Minotaur on 05/01/2016 - 17:38

    Consumer law says you're entitled to a refund if the product does not match its description. The description of a gift card includes that it can be used for purchases in specified stores. If it can't be used for this then it doesn't match the description, so you should be entitled to a refund under consumer law

    • overlord on 05/01/2016 - 17:42
      +1

      of course you will get your refund if there's any money left after the secured creditors get their shares.

      "The Corporations Act 2001 determines the order in which the external administrator has to repay money owed by a company to certain creditors. Consumers will generally be ordinary unsecured creditors and will only be paid after monies owing to other classes of creditors, such as employees and shareholders, have been repaid. "

      • imahapyboy on 05/01/2016 - 18:02

        I agreed with you!

      • annarchon on 05/01/2016 - 21:02
        +6

        Thing is, they probably bought it from Woolies or Coles. Not directly from DSE. Perhaps there is some recourse via Woolies/Coles. After all, they are the one that sold these unusable gift cards.

      • chiefbodge on 05/01/2016 - 21:03
        -1

        So shareholders a repaid before customers? That is incredibly messed up - shareholders took a gamble on a business knowing the full facts, if anyone deserves to lose out when a business goes bust it's them. The law should be changed to protect customers over shareholders.

    • INFIDEL on 05/01/2016 - 17:45
      +2

      Ah Corporations Act vs consumer law…

      I think the only product under consumer law is the piece of plastic. I think it matches its description as a piece of plastic :(

      The credit associated with it is held by Dick Smith, which is in administration. So is up to administrator decision…
      Consumer law does not cover credit held by or invested in companies. Thats governed by the Corporations Act, as pointed out above.

      See ACCC advice on consumer credit when administrators are appointed

      Line up for your refund, but it probably won't be much or anything, and likely to be a long wait. Just keep your receipt handy.

      Best way is if you bought the gift card by credit card or PayPal, try claiming back from them.

    • imahapyboy on 05/01/2016 - 18:01

      you are totally wrong

  • phunkyfeelone on 05/01/2016 - 17:40
    +5

    It all depends on the business strategy - is it worth more to save the business or are the assets more valuable?

    Save the business:
    1. All stores to reduce casual staff by 25-50% effective immediately
    2. Sack the Marketing Director immediately, this crazy fluctuating pricing and false discounting has damaged the business significantly
    3. Honor all purchases with deposits, conditionally honor gift cards (must spend double the value to use a card (ie. a $100 card can only be used on a $200+ purchase)
    4. Close bottom 10% of stores within a month, move the valuable stock to other stores, liquidate the rest. That will reduce the bleed.
    5. Reduce category variation, focus on what customers come to DSE for. Delete categories that are not competitive.
    6. Close another 10% of stores (strategically, high overheads vs revenue etc.) within next 3 months, move the valuable stock to other stores, liquidate the rest.
    7. Do absolutely everything to rebuild trust and focus on core business

    Assets:
    1. Do everything to stop capital leaving the business…which is what they are doing.

    I can see where this is heading, DSE have some good retail spots, it just depends whether they own them.

    No matter what happens, I feel sorry for shareholders - they won't get their money back either way.

    • overlord on 05/01/2016 - 18:02
      +4

      I think the easiest way is to repeat step 4 for 10 times :D

      • JimmyF on 05/01/2016 - 23:27
        +2

        You do realise that even doing this 10 times, will still mean there will be DSE stores open ;)

        • inherentchoice on 06/01/2016 - 04:40
          +2

          (1-0.1)^(10)=0.348

          So there would still be 35% of the stores left.

    • 8anddrank on 05/01/2016 - 18:41
      +1

      phunkyfeelone for CEO!

    • infinite on 05/01/2016 - 18:51
      +1

      They don't own any of their store locations, they are going to have to negotiate or pay out what's currently left on their 5yr commercial leases.

      • phunkyfeelone on 05/01/2016 - 18:59

        Didn't know the status of the locations. They do have some good locations which may be attractive for negotiating alternative tenants.
        But in many cases similar stores already have a presence.

        Either way, I'm 99.9% certain they will trade down the business to pay small cents in the dollar to big creditors.
        Gift cards will get nothing, shareholders will likely get nothing after everything is done.

        Interesting will be David Jones, will they keep in the electronics game or exit (many DJ's tech departments were subleased to DSE)

    • [Deactivated] on 05/01/2016 - 18:58
      +4

      MFW when you assume Dick Smith stores have casual staff lying around to terminate. It is the most understaffed consumer electronics retailer by a huge margin.

    • INFIDEL on 05/01/2016 - 19:02

      A number of problems there…
      For example,
      Closing stores with long term leases was a problem for Woolies, which progressively closed them as leases expired. Unless a new tenant can be found, paying lease costs on closed stores with no income is expensive.

      Last time Woolies appointed an administrator to close down some of the unviable stores. There was a fire sale, with different prices at different stores that were closing.

      The easiest & usual step, for administrators under the Corporations Act, is to remove all unsecured credit (including gift cards). That move clears debt from the books quickly.
      It won't be popular, but they don't do this work to be loved.

      I'm sure the administrators will be considering moves like sacking temporary casual holiday staff (students), considering what DS core business & niche is, changing marketing strategy, etc.

      But an issue is suppliers won't supply stock on credit, which is a killer for a business. Retail relies on credit, otherwise they need to raise a lot more money, which is expensive. Without attractive stock to bring customers into stores, there is no future for the present model.

  • Capone on 05/01/2016 - 17:45
    +5

    Nothing lost for me here. However they did give me a free Samsung tablet because of how shitty their system must be. Bought a tablet, didn't send it, rang and complain, offered a refund and took it, they sent the tablet soon after. No money charged.

    • puffinfresh on 05/01/2016 - 17:51
      +5

      I ordered a $15 item and they sent me a completely different $150 item. No wonder they went broke. They were so poorly run.

      • pinktasha on 05/01/2016 - 19:02
        +5

        Same here, ordered a $15 iPhone case and received a $60 breville milkshake maker.

        • yaziyo on 05/01/2016 - 21:09
          +2

          Doesn't matter had milkshakes

    • Flowerbomb on 05/01/2016 - 18:18

      Was it the Samsung tab s 8.4 inch for $159?

      • Capone on 05/01/2016 - 19:56

        Galaxy Tab S 10.5 32GB

        • Flowerbomb on 05/01/2016 - 20:00

          You lucky sob. That's a free $299 tablet, I paid for mine but still happy. At least you gained from this.

  • jdr on 05/01/2016 - 17:53
    +9

    Meet the team that dicked Dick.

    And beware of their next victims
    Affinity Education Group,
    Mark Group,
    Shoes & Sox

    among others.

      • mding on 05/01/2016 - 21:47
        +10

        Scumbag second hand car dealer:

        -buy old cars that's got tons of problems that no one wants for cheap.
        -give it a good clean and fresh coat of paint. apply ghetto fix so it atleaset can drive in a straight line, temporarily.
        -sell it to unsuspecting buyers as a execellent condition, well running car with zero problems.
        -Profit…

        It's only business…profit > morals.

        • Boodek on 05/01/2016 - 23:43
          +3

          Great analogy.

      • phunkyfeelone on 06/01/2016 - 09:30
        -1

        Wow, so many neggers!!

        You're applying morals to a capitalist fight.

        If they had turned the business around and tripled the share price, you'd all be singing their praises.
        Investment is about getting the highest return on your capital, not about doing what's morally right.

        They divested of the business fully in 2014, it's the management team who are to blame!
        Bad marketing strategy, bad capital management, poor quality slow moving stock, moving the business into a electrical retailer competing with multiple high capital businesses (JB HiFi, Harvey Norman, Officeworks etc.), expensive projects with very low return (Dick Smith TV's: high capital outlay (to design, manufacture and import), and to sell at low margin = bad cash flow.)

        Don't shoot the messenger!

        • jdr on 06/01/2016 - 10:51
          +5

          From what I have read, they did not turn the business around at all. They played with the numbers to create the illusion that the business was better. They liquidated stock to create cash for them to use to pay Woolworths. They wrote down the stock values so that sales suddenly had artificially larger profit margins to make a stockmarket float more attractive.

          A year later, they float the company with an artificial value of $520 million based on the illusions created by their smoke and mirrors accounting. They left the real balance sheet in a poor state and the new management had to re-stock the depleted shelves using more debt than they should have needed. Meanwhile, Anchorage sells off the shares before the problems surface. They dumped it quickly because they knew the problems that were coming.

          And yes, the new management could well have made some bad errors but the shiny refurbished company that they were sold was a lemon.

          Mr Messenger, have a read of some of the industry opinion and analysis.

        • phunkyfeelone on 06/01/2016 - 18:12

          @jdr:

          I too have read industry opinions and analysis, I'm not disagreeing with you

          They did all of the above - i'm just saying that they didn't break any laws in doing so.
          It's what capital investment companies do - buy cheap, manipulate capital and temporarily improve the numbers.
          Make the business look attractive, then sell.

          Capital Investors are not in the business of doing what's morally right, they are there to make big dollars fast.
          It's very Wolf of Wallstreet, but there are dozens of others out there like them.

          The management team should have called this out much earlier, and taken steps to correct. But they didn't, they just carried on with the same strategy. They are the ones who should be accountable to investors.

        • INFIDEL on 06/01/2016 - 18:17

          @phunkyfeelone:
          Flipping terrible! ;-)

        • phunkyfeelone on 06/01/2016 - 18:28
          +2

          @Infidel:

          Yes, would I personally do that? No.

          I have left 2 companies (one of them one of Australia's largest banks) because of the lack of morals of the Board of Directors.
          I had direct relations with the board, and I was disgusted with how their internal actions conflict with their public image.

          The other was a company where the Board were lining their own pockets with kickbacks from suppliers and customers, and when the CEO said it's "just the perks of the job", I left.

          All I am saying is what they did is immoral, but not illegal.

      • markis10 on 06/01/2016 - 14:51

        Nothing to do with Anchorage, really, check out their history FFS.

        Burger King NZ - massive losses after Anchorage sold them.
        Golden Circle - Heinz pretty much shut them down not long after buying them from Anchorage

        And they still own Brand Collective - i.e. Dunlop Volley, Julius Marlow and Cosby

        • DJR9000 on 06/01/2016 - 16:22

          Cosby, no wonder there is funny business going on :)

    • dimple on 06/01/2016 - 03:30

      Hmm I have my child signed up for their daycare later this year. Should I be looking for a new place?

  • montorola on 05/01/2016 - 17:54
    +1

    So does this mean I can't claim warranty for anything I bought from SlickSmith?

    • vid_ghost on 05/01/2016 - 18:18

      Yep.. There is no more dicksmith.. Its gone… A store that doesnt exist cant give you warranty

    • whodidthat on 05/01/2016 - 18:22
      +1

      You should be able to go through the item manufacturer?

      • INFIDEL on 05/01/2016 - 18:31
        +1

        Unless it's a DS branded or store product.

        • whodidthat on 05/01/2016 - 18:31

          Yes, that's probably true.

    • Multiverse on 05/01/2016 - 20:34

      Take it back to the manufacturer:)

  • Saturday on 05/01/2016 - 17:59

    I have about $200 gift cards, bought a few months ago from Coles when they had the extra 10% value sale. I wanted to buy a tablet at the time, then the store run out of stock, so i am stuck with some plastic. I was wondering whether i can go back to Coles for a refund. Would i have an argument?

    • INFIDEL on 05/01/2016 - 18:05

      I sympathise, but… at the time Coles sold you the cards, you could redeem them at DS. They didn't sell you a faulty or unusable item. Although they were supposed to be valid for 12 months, the demise of DS ended that validity. Gift Cards are always a risk.

      Best way is if you bought the gift cards by credit card, try claiming back from them. Find the receipt or ask Coles for a copy (date will be on credit card statement).

    • ahara on 05/01/2016 - 19:06

      As per the Westpac website here you may have a case to receive your money back if you paid by credit card:

      Specifically you can ask for a chargeback (within 30 days) or dispute a transaction (over 90 days).

      … you wish to dispute a pending transaction or a transaction over 90 days old, please call us:
      1300 130 961
      +61 3 6345 1058 (outside Australia)

      In some circumstances we may be able to dispute a transaction for you with the merchant’s financial institution (called a ‘chargeback’). If you would like to chargeback a transaction, you will need to lodge the dispute within 30 days after the date of the statement on which the transaction is recorded.

      Nevertheless, I know from experience that the bank teller may say something along the lines that its not possible or try to talk his way out of it, but as long as you insist on recording the case then its up to the Bank and the card issuer to investigate and to 'prove' that the item/service/etc was provided for the amount paid on your credit card statement.

      Updated:
      Also refer to the following paragraph here

      Consumer group Choice said that while customers who paid by credit card could seek to have the charges reversed by their banks, those who used cash or Eftpos would have to register as creditors with the voluntary administrator, and hope for the best.

      • Saturday on 05/01/2016 - 19:35

        Thank you guys for your replies. Unfortunately, i did not use a credit card. I think it was a coles gift card i redeemed with my CBA credit card reward points. Deadend for me i guess?

        • PVA on 05/01/2016 - 19:52

          try anyway. go to the coles store and say the cards dont work and you want a refund. better than doing nothing.

        • lukeghulm on 05/01/2016 - 22:40

          Under consumer law you are absolutely entitled to a refund from Coles and I am sure they will provide it.
          You purchased a "gift card that could be used at Dick Smiths for said value for 12 months from purchase" you did not receive what you paid for.

          Under consumer law you are entitled to a full refund as the item you brought did not match its description.

          If you buy milk that expires in a week and instead it is off within 5 days you are entitled to a full refund as the item did not match its description.

          The fact that you 'could have' got full value from the product by consuming it some time earlier is irrelevant.

          Where people may be getting confused is that if you had purchased the product directly from Dick Smith you would be an unsecured creditor and whilst legally entitled to a refund you would only be able to receive as much as was allocated you by the receivers.
          In your case (after receiving your legally entitled refund) it is Coles who will become a $100 unsecured creditor (depending on their supplier arrangements with DSE).

        • Boward Woward on 06/01/2016 - 09:03

          @lukeghulm: Bought mine from Woolies during the 10% extra value sale, and was waiting on 13" MacBooks to come in yesterday only to hear this news. Rang up woolies, spoke to the manager and was told no returns or exchanges after the gift card has been "activated", as it has been sold on behalf of Dick Smith. I'll try the ACCC to see if the consumer guarantee applies to gift cards.

    • JimmyF on 05/01/2016 - 23:29

      Yep…. worthless now.

      Lodge a ACCC complaint to get them to look in to changing the laws for gift cards to become secured creditors!!!

  • noshopping on 05/01/2016 - 18:02
    +7

    Soooo technically, a pack of Enveloops is technically worth more than the entire Dick Smith franchise now? (as they're in negative loss territory)

  • jdr on 05/01/2016 - 18:03
    +2

    Feel a bit sorry for this guy

    and her

    • INFIDEL on 05/01/2016 - 18:10
      +4

      Trying to sell Dick Smith Gift Card worth $1044 for $1020 (2% discount!) - no deal. You lose.

      • jdr on 05/01/2016 - 18:40
        +4

        Bet he wished he offered a decent value deal when he first tried to sell it last year. Relisted it on 29/12 for the same pissy discount. Now he's burnt.

        • first in line on 05/01/2016 - 19:21
          +2

          that's what you get for being stingy >_<

    • [Deactivated] on 05/01/2016 - 18:45
      +2

      The eBay listing has now been ended by the seller. I guess the idiot will learn that greed will get you nowhere!

      • JimmyF on 05/01/2016 - 23:30

        ebay ended all DSE gift card listings.

    • rogsamsy on 05/01/2016 - 19:05

      both been forced to end their listing by the look

  • relliksalta on 05/01/2016 - 18:19
    +4

    Don't feel sorry for them. It's a scum move to try and sell them when theyre worth nothing/.

    • jdr on 05/01/2016 - 18:38
      +2

      I agree for the $45 card, that was only listed this afternoon. But the $1044 one was listed 29/12, not today.

  • love2buy on 05/01/2016 - 18:25
    +1

    What happens to my warranty on my dse branded tv?

    • infinite on 05/01/2016 - 18:27

      It's gone, too.

    • sintro on 05/01/2016 - 18:28

      You have no warranty.
      Treat it nice and hope it doesn't break down.

      • [Deactivated] on 05/01/2016 - 21:25
        +3

        It is DSE brand.. Simply don't use. Switching it on will blow it up.

      • Probspot on 06/01/2016 - 07:51

        They're not the worst. Parents have had a DSE TV for 2 years and still running well.

    • [Deactivated] on 06/01/2016 - 12:23

      The physical warranty card/paperwork is now worth more than the likely value of any warranty payment.

  • vid_ghost on 05/01/2016 - 18:30
    +5

    DICK Smith customers are furious the retailer kept selling gift cards over Christmas in the lead-up to its voluntary administration, announced this morning.

    The vouchers are now virtually worthless, with the receiver appointed by the retailer’s bank stating it will not honour gift cards or refund deposits.

    Ray Cohen was lucky enough to cash in his gift card before Dick Smith went bust, but was less than impressed with how the company tried to pull the wool over his eyes.

    In a conversation with the retailer via its Facebook page on December 29, Mr Cohen expressed concern over whether the gift card would hold its value.

    Read more here …

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

    • INFIDEL on 05/01/2016 - 18:34

      And they haven't closed down, just gone into administration :( Its easy to be knowledgeable in hindsight.

      Unfortunately retailers have sold gift cards in the past up until the doors closed on the failed business. Its the cheapest way to raise capital to stay afloat.

      A warning sign is heavily discounted gift cards, but that wasn't the case here.

      • annarchon on 05/01/2016 - 21:04
        +2

        They had 10% bonus value first from Coles, then Woolies. You rarely see this type of bonuses without having to jump through a couple hoops.

        • chill on 05/01/2016 - 21:38
          +3

          Big W the other week?

        • INFIDEL on 05/01/2016 - 21:51

          A 9% discount may sound good, but that's not unusual on other gift cards. Woolies was offering $10 off next shop with $50 gift card purchase a while back.

          Previous gift card heavy discounts at failing retailers were much higher, around 50% from memory.

    • ahara on 05/01/2016 - 19:14
      +1

      Very interesting article and people should note the following information in it:

      Consumer group Choice said that while customers who paid by credit card could seek to have the charges reversed by their banks, those who used cash or Eftpos would have to register as creditors with the voluntary administrator, and hope for the best.

      As long as you used your credit card for the purchase (even for gift cards), raise a case with your bank or financial institution to reverse the transaction (chargeback) or record the transaction as fraudulent (i.e. not received good/service paid for).

      You may have to be persistent though as bank tellers may try to avoid recording the case for you.

      • lukeghulm on 05/01/2016 - 22:45
        +1

        Similarly if you purchased the cards from a third party (even with cash) e.g. Woolies, Coles, Big W… you should absolutely chase them down for a full refund. THEY are the ones that sold you a product that did not match its description and thus it is them that owe the refund.
        They have legally failed in their due diligence as a business by selling items that were unfit for their purpose and did not match their description.

        • INFIDEL on 05/01/2016 - 22:49
          +1

          You are confusing Consumer law with the Corporations Act. Won't work. Use of credit of a business is covered by the Corporations Act.

          If you bought a gift card after DS administrators decision not to honour gift cards for purchases (under the Corporations Act), that would be different & you would be due a refund. If you bought it before then, it was a valid, but unfortunate, purchase. The store acted in good faith, the product was valid at the time of sale, so no refund.

    • atrix on 05/01/2016 - 21:08

      how would the online dick smith worker have any idea whether the business would go into administration. they probably should just of ignored the comment, though.

    • JimmyF on 05/01/2016 - 23:31
      +1

      Yep…. all giftcards are worthless now and a shocking move by DSE only weeks ago!

      Lodge a ACCC complaint to get them to look in to changing the laws for gift cards to become secured creditors!!!

  • HONDA4LIFE on 05/01/2016 - 19:04
    +2

    Their overseas call centre were useless when I had to deal with them. Never bought from them again after that experience.

  • love2buy on 05/01/2016 - 19:10

    Ive bought dse gift cards in the hundreds in the past when they first introduce discounts on them. I still got store credit of $30 which i guess is gone. Hope not too many people here are affected.

    • unity1 on 05/01/2016 - 19:15

      I'm sure there will be a few. I might have $10 or $20 worth of gift cards from previous refunds. Nothing to lose sleep over.

  • jlogic on 05/01/2016 - 19:26
    +2

    So glad I didn't buy $500 in gift cards over Christmas now.

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