It’s the end of the line for the embattled Dick Smith Electronics retail chain, with all stores set to close after a suitable buyer for the business could not be found.
Earlier today receivers Ferrier Hodgson, who have been handling the company ever since it went into voluntary administration last month, announced the decision that will see 301 stores in Australia and 62 in New Zealand close their doors over the next eight weeks. The closures will see nearly 3,000 people lose their jobs.
The business had been searching for an appropriate buyer ever since it shockingly went into administration a few weeks ago, capping off months of uncertainty and epic fire sales that saw prices in all stores slashed to near nothing.
James Stewart, one of the principal receivers handling the struggling company, stated that whilst there were offers on the table from interested parties, none came close to being satisfactory.
“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 stand-alone businesses. The offers were either significantly below liquidation values or highly conditional or both.”
The receivers also provided no information on how the company will handle any outstanding Gift Cards being held by customers. It’s likely they’ll simply disappear into the ether, as a Gift Card holder is classified as an unsecured creditor of the company, meaning there’s no guarantee of money back if the arse-end falls out of the business. Which it has in this case.
All staff in Australia are expected to be paid out their full entitlements. Meanwhile staff in NZ will be paid up to the maximum statutory limit as stipulated by New Zealand workplace law.
So there you have it. The end of an era, due to a complete and utter lack of buyers.
They wouldn’t even take a single solitary buck off a kid to let him have some fun with an office chair and a fire extinguisher like it was 35 Industry Way.
‘Course the fate of the factory and the fate of Dick Smith Electronics is eerily similar.
First it started falling over. Then it fell over.
RIP, DSE.
Photo: Dave Rowland/Getty.
