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

        • regenade on 08/01/2016 - 00:35

          Lol Australia and mining , made me laugh. We are in 2016, not late 90s/early 2k. Problem is the price adjustment due to mining boom never came down , still sky high RE and commodity prices even with falling wages

        • nedski on 08/01/2016 - 01:11
          +1

          Yeah I also saw those water bottles and was like WTF, are they like "Smart" bottles or something.

          Some genius thought they could buy them for $2 and flog them for $20 each while totally destroying the brand.

    • samfisher5986 on 08/01/2016 - 01:16
      -1

      The problem is not high rent and wages….

      High end is only a problem for small business.

      High wages is only a problem for stores that require a lot of staff, yet DSE only require two of them.

    • juzz0 on 08/01/2016 - 04:42
      +1

      I understand the rents are so high to pay for all the overheads (and any developer interests who require ROI for the centres) but I don't understand in the event that a store isn't doing well they don't come to some sort of tentative arrangement to give them some sort of ability to trade out of the mess without the rental burden. Of course the Frank Lowys of the world aren't charity heads but it would be a prudent business decision in my mind. Too often I see stores close down in shopping centers, or on commercial strips, that remain like that for months and sometimes years ("Something new and exciting is happening soon!", the definition of 'soon' stretches on for six-nine months, fit outs don't take that long, even complex ones wouldn't take longer than a couple of months and some I walk past every week for a year and there is no activity to be seen or heard - these are vacant spaces). If rents were really that high in places like metro Sydney and Melbourne for a plum spot in a shopping district then owners seem to be cutting off their nose despite their face, or have really poor commercial estate agents who don't know how (or don't care) to price rents correctly.

      There was a Bing Lee that closed down in Bondi Junction along the main Bronte Road shopping strip that has been boarded up for years now (https://forums.whirlpool.net.au/archive/2218138). It is right next to thriving eateries and the Roosters leagues club but for some odd reason no one has moved in. I can't help but feel owners with inflexible rental requirements would rather lose thousands of dollars in lost rent than rent out something they were able to rent out before for say 25% less. When there people are people homeless outside on the street and businesses would kill to move into the place owners/developers are supposedly protecting the value of their investment by not renting out the commercial space at a lower 'devalued' price. Meanwhile it becomes an eyesore a frontage full of half-torn posters with the glass covered with rotting boarded wood, it defies belief. Sometimes it isn't just the owner's fault with planning approvals getting blocked by council but I find it hard to understand property that is worth thousands of dollars each month being disused for months and years on end.

    • victorheaven on 08/01/2016 - 09:25
      +2

      $15,000 per month in rent? Maybe try per week.

      • [Deactivated] on 08/01/2016 - 13:58
        +1

        Not quite that high, at least for the square meterage of the average Dick Smith store. Even the bigger stores in landmark locations rarely topped $60k/mth in rent.

        • victorheaven on 08/01/2016 - 15:12

          I used to work in a bakery (Chatswood, Sydney) which is maybe 50 sqms in total, rent was $2500 per week and this was 7 years ago. (It was not in a shopping centre but on a busy street)

          I am not surprised if many DS stores topped $15k per week given the size and the fact that they are in a shopping centre.

          Chatswood is a wealthy suburb though, not sure about the rents on the western end of sydney. $15k per month is definitely too low regardless.

  • Hirolol on 08/01/2016 - 02:24
    +1

    So what if someone came along and bought the dick smith nameand everything with it?
    Why did they go into voluntary administration?
    Too much debt?
    I dont quite understand and if this has been already mentioned in a comment then please refer me to it.
    TIA

    • Jabba the Hutt on 08/01/2016 - 07:56
      +6

      Why did they go into voluntary administration?

      Maybe because they used four separate courier runs to deliver my single order of a $3 3.5mm adaptor, a $4 3.5mm cable, a $3 joiner and a $5 pack of F-connector adaptors.

      That sort of thing has been pretty typical of my recent Dick Smith orders. Thought they must know what they're doing - obviously have a pretty sweet deal with Toll logistics. Now it seems more likely they were just incredibly inefficient/wasteful.

      • [Deactivated] on 08/01/2016 - 09:34
        +1

        That sort of thing has been pretty typical of my recent Dick Smith orders. Thought they must know what they're doing

        Dick Smith moved to distributed warehousing model (aka stores as "mini fulfilment centres") in the first quarter of FY14. It's not an unusual practice in countries as large as Australia and the USA (see also Macy's, Best Buy, Williams-Sonoma et al).

        Yes, DSE knew what they were doing with distributed warehousing. In hindsight, it was one of the few things they actually got right.

        • Jabba the Hutt on 08/01/2016 - 11:25
          +1

          Had that 'am I talking out of my arse?' feeling the moment I clicked the post button, so did a bit of reading and yep - it started to make more sense.

    • the-mal on 08/01/2016 - 09:45
      +48

      So what if someone came along and bought the dick smith nameand everything with it?

      They won't. The DS name is tarnished, the sites and locations are a fundamental problem for the business and the business systems (inventory, sales both online and POS) are broken. The only good thing about DS is the stock and most of that will be gone after the suppliers claw back unpaid goods.

      Why did they go into voluntary administration?

      Quick answer? The banks said they weren't going to give them any more credit and they didn't have the funds to replenish their stock.

      Too much debt?

      Not really. The debt levels of DS weren't outrageous. Their inability to make money and find a sustainable business model was. Woolies made some very bad decisions when running DS - they expanded very quickly and put sites everywhere, however their sites and branding changed frequently and left people confused (what do they stock? which stores stock what? the layouts were always different). Then they got some solid competition (rapid growth of JB, continued growth of Harvey Norman) and they were in a struggling position. Then the online revolution hit. People stopped buying most components, consumer electronics and entertainment in store and moved online. DS tried with their online presence but their business systems made it clunky and the customer experience generally poor. They tried to rescue themselves by selling off a whole heap of stores. It didn't work. Woolies sold DS to Anchorage Capital a few years back.

      Anchorage used a few methods (mainly stock writedowns and firesales) to make the books of DS look good. They got customers through the doors by discounting goods to crazy levels and just didn't restock the shelves. Money in vs hardly any money out makes books look good. But of course that's not sustainable.

      Anchorage floated DS on the ASX and a bunch of people looked at the books and though "Wow, what a buy!" and bought shares. Anchorage made a LOT of money and wiped their hands of DS. The new board and admin of DS poured over the books and realised they needed to restock the shelves but had to use all their cash reserves to do it. This makes the books look terrible! The share price began to slide. Sales were down…but why? They were good when Anchorage owned them. Ohhh…because they always had massive discounted sales. So DS started using massive sales to get people through the door again. It worked, but the sales weren't making them any money and customers learned to only shop at DS when sales were on. Only buy discounted goods. That's NOT a money making strategy.

      Share price continues to plummet. The banks start to get concerned that DS isn't a viable company long term. Several profit downgrades by DS makes everyone even more concerned. This last Christmas was the "last chance"…they HAD to make a lot of money, sell lots of goods. They didn't, it was a bad Christmas for DS. The banks had enough, they told DS they weren't going to lend them any more money and without cash DS had no way of restocking their shelves or paying their suppliers. They were screwed. So they put the basically worthless stocks in a trading halt and called in the Administrators to try to stop the inevitable end.

      The banks retaliated and called in the Receivers to claw their money back.

      And now we have the current situation. The Receivers are calling the shots. They want to recoup as much money for the banks as possible. And everyone else (customers included) are seeing the end and trying to all rush and claim any money they can. Dick Smith are now dead in the water.

      • Hirolol on 08/01/2016 - 22:08
        +4

        Wow that was an epic read and thank you for taking the time to write that up.

      • jv on 12/01/2016 - 13:12

        The DS name is tarnished

        I can see a defamation suit coming…

        http://goo.gl/otFlgH

  • [Deactivated] on 08/01/2016 - 08:19
    +1

    If you are a Dick Smith investor you should take class action against the appointed voluntary administrator for gross incompetence by trashing any goodwill the business had and virtually making the business worthless after public backlash.

    I wonder what Gerry would make of not honouring gift cards. If he called the December sale suicidal then this foolish act by the voluntary administrator in cancelling laybys, online orders and gift cards must be suicide x 1000.

    Why not follow Borders lead and allow customers to use their gift cards on Dick Smith generic stock only provided they paid at least 50% of the value with cash (ie. $400 DSE TV - $200 gift card value .. $200 cash).

    Not only are DSE branded products heavily marked up but by doing such an act would keep cash flowing, the majority of the customers with unused gift cards happy and clear stock that is simply worthless to another retailer.

    Dick Smith has unfortunately not only been cursed with crap management but a voluntary administrator to match.

    • the-mal on 08/01/2016 - 09:47

      If you are a Dick Smith investor you should take class action against the appointed voluntary administrator for gross incompetence by trashing any goodwill the business had and virtually making the business worthless after public backlash.

      It's the Receivers calling the shots not the Administrators. The Receivers are acting in the best interest of the secured creditors who hired them, as they should. Not much the Administrators can do at this point except make some recommendations that will be promptly ignored.

      • regenade on 08/01/2016 - 12:18

        If Coles can take a hit for the Goodwill why not Nab and HSBC for the gift cards by telling to do the needful to the appointed receivers. Banks are as always the evil and I m sure some senior executives at NAB and HSBC have their job on the line as well if they loose most of the secured credit.

    • gromit on 11/01/2016 - 12:13

      When the administrator's come in there are legal requirements about what creditors get paid first. gift cards would be considered unsecured debts and would be way way down the list, it isn't a choice to piss of the customers it is a legal requirement. At the bottom of the list is actual investors who will at best get a few cents in the dollar or maybe nothing back.

  • cmyk on 08/01/2016 - 10:03
    +5

    Coles will now exchange DSE gift card with Coles gift card if you have proof of purchase.
    http://www.smh.com.au/business/retail/coles-to-exchange-dick…

    • defined on 08/01/2016 - 10:14
      +3

      Kudos to Coles for taking that initiative when they had no legal obligation to do so.

    • lbft on 08/01/2016 - 10:20
      +1

      Wise move - even for Coles a large number of chargebacks wouldn't be the cheapest thing to deal with, and that's before even considering the PR cost of having hordes of really upset customers.

    • Coops1 on 08/01/2016 - 18:54

      Nice job Coles.

      Crystal ball, would have been a great way of getting Coles cards @10% off :)

      • imahapyboy on 08/01/2016 - 22:20

        you are wrong, they not goign to give you bonus 10% credit, you pay for 50 they will give you 50 coles card

        • Coops1 on 09/01/2016 - 04:31

          I would hate to think that anybody bought these at full price…they were 10% off over a number of weeks. Eg. Pay $45 for $50 gift card

        • gromit on 11/01/2016 - 12:38

          @Coops1: you require proof of purchase. They aren't going to refund you more than you paid. It won't be the value of the card that is important, it will be what you paid for it.

  • thydzik on 08/01/2016 - 10:19
    +5

    "To register a claim and vote as an unsecured creditor for a gift card, deposit or a store credit obtained prior to 4th of January, you must submit a dully completed Proof of debt and Proxy form to the registry by the cut off 12pm on the 13th of January. These generic forms and additional information are available on"
    www.mcgrathnicol.com/assignments/dick-smith-group-companies/

    • AlisonP on 08/01/2016 - 10:40
      +2

      Adv. 1. dully - without liveliness; "she nodded her head dully"
      2. dully - without luster or shine;

      <— Grammar nazi when it's someone's profession.

      • [Deactivated] on 09/01/2016 - 20:08
        -1

        I think he meant duly…

        • AlisonP on 09/01/2016 - 22:24

          He took the quote verbatim from Magrath Nicol, the Dick Smith receivers website.

        • [Deactivated] on 09/01/2016 - 22:29
          +1

          @AlisonP:

          I guess they must be pretty dull.

        • strangeloops66 on 10/01/2016 - 13:43

          @AlisonP:

          McGrath Nicol are the appointed administrators.

    • theguyrules on 08/01/2016 - 11:10

      This isn't to get money back btw, at least not yet.
      "The Receivers and Managers have indicated that Gift Cards issued by the company prior to their appointment, deposits taken in respect of future supplies and store credits cannot be honoured by the Receivers. As a result, affected parties may (subject to other remedies available to them) have a claim as unsecured creditors of the company. For the purposes of the First Meetings of Creditors scheduled for 10am (Mac 1 Pty Limited) and 12pm (all other entities) on Thursday, 14 January 2016, the Administrators are prepared to admit those claims for voting purposes."

  • hamwhisperer on 08/01/2016 - 12:17
    +4

    This should be added to the Op.
    https://foragerfunds.com/bristlemouth/dick-smith-is-the-grea…

    • Danny441 on 08/01/2016 - 14:20
      +1

      thanks. it's a good read.

  • tik tok on 08/01/2016 - 14:20

    So I have a few Click and collect orders that I can collect only after a week. This news means I have lost my money ?

    • BradH13 on 08/01/2016 - 18:38

      Go in-store and see. Could be the news, though.

    • [Deactivated] on 09/01/2016 - 20:05

      Sounds like the receivers have taken your cash. Sorry :(

  • ShamelessBargains on 08/01/2016 - 16:48
    +1

    This thread at the end of last year discussed DSE failures too. It shows that firm has been strugglinh for awhile and it didn't just happen overnight. Hopefully there is an independent equiry into these equity funds buying up companies for nothing, manipulating the accounting figures, dumping it on ASX and running off with millions.

  • Duram on 08/01/2016 - 18:03

    Lol and people say buying shares is a smart investment.

    • imahapyboy on 08/01/2016 - 22:21
      +1

      yeah, it is smart investment, but too many of them are stupid

    • [Deactivated] on 09/01/2016 - 20:05

      Banks are much safer and less volatile than share markets, without a doubt.

  • nvox on 08/01/2016 - 18:11
    +2

    Mwave is offering $20 Mwave Dollars for trading in Dick Smith Gift Cards

    • Clear on 08/01/2016 - 23:01

      You should post it as a deal.

  • Oblong on 08/01/2016 - 22:57
    -1

    Are malls and shopping centres just going to become ghost towns more and more?
    I hardly ever go to retailers anymore other than supermarkets

    • Clear on 08/01/2016 - 22:59

      You should see it in the smaller cities. Shop owners bagging out online shops and complaining that they're going broke because everyone buys online now.

    • Fuzor on 08/01/2016 - 23:25
      +5

      Obviously you havent been to Chadstone. You couldnt get a carpark if you begged for it.

      • [Deactivated] on 09/01/2016 - 20:04
        -4

        You must be doing well if you beg and have a car…

    • aussieprepper on 08/01/2016 - 23:48

      i think this might push people back to shopping centers

    • 4892 on 09/01/2016 - 00:35
      +1

      Where else will we be able to go to check out the merch before we buy online delivered to our door for much cheaper? ;)

      Nah, I prefer going in and picking up that same day as I pay if I can get a good enough price. Sadly I have no store loyalty besides cheapest price.

  • kash1 on 09/01/2016 - 11:33
    +4

    Asked in Dick Smith today about the safety of placing a Click and Collect order.
    Was told, If they don't have the item in stock you won't get a refund as they aren't allowed to process refunds.

    • realfancyman on 09/01/2016 - 11:41

      That's just illegal. If they sell you an item, they can't just not give it to you and deny you a refund.

    • wtfnodeal on 09/01/2016 - 11:42
      +1

      Are dealing with a pirate? Ha-ha..

    • hollykryten on 09/01/2016 - 12:45
      +1

      Basically you can give us money through click and collect and if we don't have the item in stock we can keep the money without supplying you with any thing as if it was a donation and there's nothing you can do to get the money back. It's nothing but lawful thievery.

      In other words click and collect is not safe at all you may as well be donating the money away to charity at least then it go into the hands or some thing worthwhile instead of giving the receivers more money for nothing.

      Always go into the store and buy off the shelf at least that way you have less chance of being totally ripped off unless ofcourse the item is a DOA Dick Smith branded product and since Dick Smith is refusing to give any refunds at all. Either way is still risky due to a chance of the item being DOA with no chance of refund unless you had of paid through a credit card and do a charge back. Pay by cash directly and you might as well kiss the money good bye.

    • spare13 on 09/01/2016 - 15:24
      +1

      Why would you place a click and collect order with DSE now? Call, confirm stock. Purchase in store.

      • paloverde88 on 09/01/2016 - 16:11

        Why would you even buy anything from private equity firm at all I have stuff delivered from China in 10 days every single time from taobao, more honest than private equity firm.

        • [Deactivated] on 09/01/2016 - 20:07

          taobao

          Sounds like an adult entertainment device..

        • wtfnodeal on 09/01/2016 - 20:19

          Pirate equity did you mean?

        • paloverde88 on 09/01/2016 - 21:57

          @KaptnKaos:

          Taobao is the Chinese version of Amazon with thousands and thousands of businesses in one website and every single thing I ordered I have received. I guess they are more honest than Australian Private Equity firms aka Dick Smith and Pacific Brands ugly fashion.

        • jkcat on 10/01/2016 - 21:09

          @KaptnKaos: Their sales on Single's day last year approx. $12,509,090,574

        • [Deactivated] on 10/01/2016 - 21:12

          @jkcat:

          Single's Day is just another scam, like Hallmark Valentine's Day.

        • jkcat on 10/01/2016 - 21:14

          @KaptnKaos: Wouldn't really mind if I can pay less.

        • [Deactivated] on 10/01/2016 - 21:15

          @jkcat:

          Pay less, pay less!

    • Associateddefaultuser19 @ Dick Smith / Kogan on 09/01/2016 - 16:56

      It's my understanding there will be clarification coming on this. Will let you know if/when this occurs.

      • paloverde88 on 09/01/2016 - 22:00

        Surprisingly the ACCC State Fair Trading so called police of the Consumers Legislation have been very silent on this matter with absolutely Zero advise for remedies for those hard done by. It is as if Private Equity Firms and Banks are above the law.

        • regenade on 10/01/2016 - 15:53
          +3

          yes big 4 banks and big shot lawyers are above law and rules in Australia, is this even new ?

        • paloverde88 on 10/01/2016 - 22:21
          +1

          @regenade:

          You all know then what to do during the election this year. You show them who's in charge. Tell all you know kick those out of office.

    • Associateddefaultuser19 @ Dick Smith / Kogan on 09/01/2016 - 18:18

      Stores should be following SOP with click collect refunds if not in stock, might take some time to filter out to all stores.

    • smalltime0 on 11/01/2016 - 05:32

      Since receivers/administrators are now in charge - anything they sell/promise to sell you now is on them.
      They just won't honour debts incurred prior to them taking over.

  • muncan on 09/01/2016 - 16:16
    +5

    In light of this no refunds for failed Click & Collect orders, perhaps it's time to ban Dick Smith from OzBargain? Or at least a big warning on every future deal not to use Click & Collect. Might apply to shipped orders too.

  • juzz0 on 09/01/2016 - 17:19
    -6

    I'm a bit disappointed with my local Dick Smith/David Jones. I have heard about the David Jones refund policy regarding items and my Xperia phone I purchased last month is defective that (Micro USB port does not work), so I went back to the David Jones but the manager told me that according to the area manager for Dick Smith run stores (DS, MOVE, DJs) even though the store is part of David Jones network he still has to abide by the instructions of the receivers and there is no processing faulty items for returns or refunds.

    The MOVE store in the same shopping complex has the model of phone that could replace it (it's even ex-display) but they refuse to transfer and replace it with this due to the no-returns policy they have in effect (even though the time since purchase is within the automatic replacement period for Sony phones which is less than a month since purchase). The Move employee was very helpful and scanned my faulty phone in the system to find out whether it was eligible for automatic replacement (it was, it depends on the manufacturer - apparently Apple items have the shortest automatic replacement periods) but since they had received explicit instructions not to replace faulty stock their hands were tied. The Move employee also told me they often have customers purchase phones at David Jones and send the customers for collection so it's not an impossibility (they aren't separate trading entities).

    I don't really understand how the retailer can overrule the manufacturers instructions for automatic replacement of the item to point of sale customers if stock is on hand (especially considering the replacement would be a scratched ex-display unit). Compounding this annoyance is the first store I went to during the sale was the Move store. I specifically asked if they had any Xperia Z/Z Ultra models and they told me they didn't have any (without considering they might have some old display stock) so then I went to the David Jones next door which told me they didn't have any (even though it said on the system they had). I went back everyday checking until near the end of the sale period in mid December when they suddenly found one that had been returned out the back.

    At the Move store I offered to purchase the scratched ex-display model due to the fact they were not able to process my faulty item return. But the price had been bumped from $74.90 to the original price $749! Which for a three year old phone (there has been z2, z3 and z5 since) is ridiculous. I don't know who the muppets are in charge of pricing these items but clearly they have little clue. The Xperia Z is a premium model but considering they came out in 12/13 (and is classified as 'end of life' discontinued) market value for it now would probably be around $230-250, for a clearance sale you would expect around $150. The ex-display model at the Move store, which has missing port flaps and scratches (the worker even said it was "mangled") would probably be only worth fair value around $100-120 but on the system it is priced to sell at $749 (when a few weeks ago these phones were being processed at $75).

    In the meantime I have invested another $22 purchasing a charging cradle online (as yet undelivered) to see if the metal contacts charge the Xperia Z phone as the micro USB is unresponsive. I don't think I'm entitled to purchase the Xperia phone at a certain price from Move just because it was on clearance weeks ago but due to the fact I was sold a defective phone in the sale period when at the time the price of the replacement was $74.90. When I go into Dick Smith I notice there are a lot of people quoting online prices or price reductions from weeks ago but these were time specific and I understand that. However due to the situation regarding the faulty phone sold and the timing of when I was sold it I believe I should be able to buy a replacement at the price it was being offered at the time I purchased the faulty unit.

    In saying all this I have not lost focus of the fact that while yes I am irritated with my experience in relation to this that many of the frontline staff I am dealing with could be losing their jobs at any time so I have been respectful when dealing with them (and they have gone out of their way to contact their area manager and see if they could do anything on their system). I have nothing but appreciation for them. Whoever has been put in charge however has dropped the ball.

    The only instructions given was to "contact the manufacturer" however when I contacted the manufacturer last week Sony told me I would need to send the phone in for repair (that is misinformation). Even though I now know the phone was in the automatic replacement period (speaking to the Move employee) the operator must have assumed I was calling up outside that (because why would I be calling the manufacturer for repair support and not taking it back to store if it was within a month of purchase?). I am worried about sending the phone back to the manufacturer now as when I purchased the open box I was not aware it had a pre-existing physical defect (which could have been caused by the person who returned the phone) and it could take a week for them to process which would put it outside the automatic replacement period. I have owned laptops in the past and port problems are usually put on as customer liability. There is no point for me to return a phone to the manufacturer for repair if they are going to turn around and ask for $150-200 to replace the Micro USB port on the phone (or charge $50 for return of it).

    I spoke to fair trading a few days ago and they told they would assign someone to my case in the next 14 days, but doubt they would priortise a matter considering one phone (many people probably have two or three undelivered TVs so I consider myself relatively lucky). I only contacted fair trading after I was advised by the DS staff that could be a good option. In the meantime I am not sure who to contact at David Jones as it seems the instructions given by Area Managers to DJ-powered by Dick Smith managers contravenes the policy of refunding customers David Jones has issued. I will call the centre up on Monday and see if there is a complaints department (even though I can't remember the last time I made one as I don't 'shake a fist' at companies, I need to make my voice heard as I don't think this treatment is really acceptable - maybe if they had no remaining stock whatsoever it would be understandable but considering they do have eligible replacement stock, scratched ex-display which I am willing to accept, I am annoyed).

    • spare13 on 09/01/2016 - 17:29
      +10

      That was a very long post that only needs a simple answer.

      Deal with Sony directly. DSE is not touching return/refunds/repairs etc etc etc, under the receivership.

      Contact Sony. Send in your phone for assessment, and they will replace/repair it.

      • juzz0 on 11/01/2016 - 02:54
        -5

        I already replied as to the reason that is not a viable option for me.

        1) By the time it takes to get to them it will put it outside the 30 day automatic replacement period meaning it will be inspected by Sony for repair.

        2) The faults are physical (as inspected by a third party - 'Fone King') and were pre-existing at the time of purchase, yes 'Caveat Empor' but the stock shouldn't have been sold if it was faulty at the time of purchase, end case. It is unconscionable for a retailer to sell a customer a phone which has been returned by another customer due to faults unless the customer is alerted of the fault in question before making payment.

        3) If dealt with the retailer under the policy guidelines at the time of purchase I would be entitled for replacement covered in the official "automatic replacement period". To my knowledge this is set not by the retailer but by the manufacturer on their stock. So some "Beats" headphones have three day replacement periods. iPhones have two weeks, while most other products are up to a month (including old Sony Xperias). It's their job to contact the manufacturer.

        Even if I followed the instruction to 'contact the manufacturer' (essentially wasting more of my time and doing what they should be doing for me) by sending the phone in now they will receive it one or two days outside the month automatic replacement period. As a consumer I should be able to go back to the POS and submit my return/replacement/fix there. I don't understand how they can change the conditions at the time of the original transaction where there is an option for automatic return replacement if faulty (if I purchase a product after 4th of January then my fault sure but this transaction was made well before that date). Especially considering the Dick Smith stores still have stock (albeit ex-display) of the phone. If they are a 'different' company then they should not have the same signage and should have explicit notices on the walls that they are different to the previous operation. My understanding is that it is 'business as usual' (that they are still "Dick Smith") until they can't find a buyer and undergo liquidation or complete restructuring.

        In any case all these events had to occur for this to result:

        1) If The MOVE store where I went the first day of sales told me the correct information this situation would not have eventuated (as I would have bought one of their phones not searched for the elusive phone showing up at David Jones).

        2) If Dick Smith did not go into receivership after the faulty USB failing completely on the phone (at first I thought there was some firmware issue so put it in STAMINA mode and tried to resolve it but the micro USB was not detecting at all).

        3) If David Jones upheld their brand as worthy of protection and granted me an immediate refund or exchange of product within their policy guidelines.

        4) If the price of the ex-display shelf stock which could be used as replacement did not get bumped up again from $74.90 to $749 in the period between phone purchase and phone return (as I was willing to forgo the issue to do with the phone and just purchase the display model again as they weren't offering replacements but for some odd reason they bumped back up the prices of years old end of life stock).

        As is I have spent hours going in-store trying to resolve this. I have been into the store on at least ten separate occasions about this one issue. I have also purchased a peripheral specifically for the phone (a metal contact charging dock still in transit, which does not resolve the USB issue as I have no way of connecting the phone via. USB to my computer or MHL to my TV - yes I went up to Jaycar to buy a $30 MicroUSB to HDMI adapter as well so I could view my Xperia phone on my Sony TV). I want now the phone fixed or a replacement. Considering the time, effort, money invested and put into this David Jones store credit (if offered) is a slap in the face.

        IMO a reasonable person would expect upon purchase that if they received a TV, phone or any product that was faulty they should get a replacement or at least by entitled to buy a replacement at the price it was at the time of original purchase. Unless of course time has elapsed; that it is now outside the first month and they haven't reported the fault, there was an awareness of the fault prior to purchase (In my case I was told it was open box as a previous customer returned it for "change of mind" as they had trouble operating Wi-Fi, no mention of any Micro USB issues in-store I tested the Wi-Fi and it worked fine so wasn't an issue for me and purchased the phone).

        I am a Commerce Grad from years back (I finished school over ten years ago when there was a thing called a UAI, TER, ENTER not an 'ATAR') who is of English-Australian background. It is heartening to know some in the OB community think I am from a LOTE background who is preparing undergrad papers without a solid grasp of the written (English) word, such is my inept paragraph formatting. I am sorry I did not attend the lit and arts courses they did so I only know how to insert arbitrary (and often incorrect) punctuation and spacing. My syntax and grammar is not the best. So sorry.

        It is also heartening to know a few members of the Ozbargain community appreciate the time I took to share my experience by down-voting my comment.

        I hope that the dunce at McGrath-Nicol who is advising the manager at the David Jones store I frequent gets the sack for his complete lack of intelligence when it comes to this. I hope that the display model in question only brings them a residual value of $20-30, being written off and sold as part of a bulk liquidation of used stock - bought up and sold to some clearance auction house. Even then due to the condition of the phone and it's age (again there has been now the z2, z3 and z5 since) it will barely sell for more than $100.

        If you think it's TL;DR don't bother. You may think this is overwrought but without explaining the details it might be as simple to you as 'contact the manufacturer' or 'deal with it'. One of the biggest no-nos is a 'sense of entitlement' when it comes to posting on any board or forum. I don't feel 'entitled' to a phone. Just to decent treatment by the company I am dealing with. I also don't expect a response on here, suggestions would be nice but I am simply venting and adding my voice to the list of Dick Smith/David Jones/MOVE customers.

    • [Deactivated] on 09/01/2016 - 20:02
      +13

      May I ask how long it took you to type this comment?

      • Baysew on 10/01/2016 - 20:21
        +4

        I think I can make it shorter.

        I'm a bit disappointed with my local Dick Smith.

    • noshopping on 09/01/2016 - 22:39
      +6

      You should start a service charging overseas students to write university essays. I like how you split the paragraphs to make it nice and neat.

      • [Deactivated] on 09/01/2016 - 23:45
        +10

        Splitting paragraphs will incur an additional charge of $4.50 inc. GST.

        Cash only

  • paloverde88 on 09/01/2016 - 19:23

    Never deal with anything owned by private equity firms they are in it for quick profit and could care less about the law, customers or ethics. They'll happily ruined anything and everything just to make a profit.
    Stay away from Private Equity firms.

    • [Deactivated] on 09/01/2016 - 20:02

      Thanks very much for the information, I'll keep this in mind next time.

  • marc86au on 10/01/2016 - 01:28
    +1

    My understanding is that the stores are no longer DSE - if you buy something now you are purchasing from the receivers, trading as DSE.

    It is a different company, it will likely show a different ABN on the receipts. They won't take responsibility for anything that was purchased previously because it was a different entity you purchased from, but anything purchased AFTER receivership should be safe. If you paid for something AFTER receivership and don't receive it, you are entitled to a refund.

    All of these people saying they can leave gift cards on the counter and walk out with goods are incorrect, as they purchased gift cards from DSE and are stealing goods from a different company which now owns the stock.

    Please correct me if I am wrong but I have been through this before as an employee of a company that collapsed and I'm pretty confident this is how it works.

    • nedski on 10/01/2016 - 16:38
      +1

      You are totes correct bro!

    • Flowerbomb on 10/01/2016 - 20:11

      Pretty sure staff can't give refunds unless permission by the receivers. That's what the employee circular from thw receiver said in the earlier pages.

    • hollykryten on 11/01/2016 - 00:20
      -2

      Still has Dick Smith on the front entrance.

  • sydneybargainer on 10/01/2016 - 10:39

    I just wondering…. if dick smith store staff getting lot of shits from customers… dick smith news is all over in media… it must be having difficult for staff… possibly losing job and difficultly dealing with customers.

  • markis10 on 10/01/2016 - 15:29
    +2

    Petition to the receivers/administrators re honouring gift cards:

    https://www.change.org/p/steve-sherman-fh-com-au-martin-lewi…

    • strangeloops66 on 10/01/2016 - 16:49

      Paul Tully, Goodna, QLD, United States

      Is that why he spelt honour, "honor"?

    • MATTDAMON on 10/01/2016 - 20:54
      -1

      Nothing quite like giving away your personal information to change.org (btw they harvest petition signers information and 'sign you up' to their email sub

    • [Deactivated] on 13/01/2016 - 11:50

      They can't accept gift cards, it's a waste of time petitioning them. If they were to do so, when they know that there isn't enough money to pay secured creditors and higher priority unsecured creditors, then they breach their receivership obligations and open themselves up to legal action.

  • horusheresy on 11/01/2016 - 01:16
    +1

    Interesting read from an interviewed dicksmith employee

    http://thebigsmoke.com.au/2016/01/09/dse-dick-smith-inside-c…

  • bleugh on 11/01/2016 - 01:29
    -1

    Erina fair was closed yesterday, some excuse about electrical problems and tills not Woking

  • Tomika on 11/01/2016 - 01:46
    +3

    I JUST WANT TO KNOW WHEN IS THE LIQUIDATION SALE STARTED!

    • 1aimeelou1 on 11/01/2016 - 12:12
      +1

      I had an email from them about an hour ago with an online today only sale if you're game!

      • Saiya on 11/01/2016 - 20:35

        Yep I got that email as well. It made me lol.

    • 4892 on 12/01/2016 - 01:04

      Well each day is costing them wages, rent, energy you would think? So the longer they are open the more it is going to cost.

  • nahi11 on 11/01/2016 - 08:23

    These guys ripped of $200,000 a charity in the process..

    http://www.abc.net.au/news/2016-01-07/dick-smith-collapse-le…

    • ca6leguy on 11/01/2016 - 10:42
      +2

      Please explain how were they ripped $200k? The fund raising haven't even started. Are they saying t costs $200k to print all the promotional materials? Looks like the charity organisation is trying to rip us off by announcing fictitious loses hoping to rake in cash from us?

      • nahi11 on 11/01/2016 - 10:50

        Yes, you're right. I got a bit carried away there.

      • theguyrules on 11/01/2016 - 12:41

        Regardless, they are still behind now due to having to print promotional materials which are now useless. They are a charity after all, they need funding.

        • ca6leguy on 11/01/2016 - 12:44
          +1

          Majority of charity have high administration cost. You need to be aware of how much of your donation actually goes as "charity".

        • theguyrules on 11/01/2016 - 13:17
          +1

          @ca6leguy: I understand, and obviously I don't buy the $200k value.

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