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

  • Ahan on 05/01/2016 - 00:09

    Damn! I have two extended warranties with Dick Smith for items purchased in the last couple of months. I guess the money is now wasted after the appointment of administrators.

    • tetsuma on 05/01/2016 - 01:55
      +1

      Call the Warrantygroup. You should be fine.

      • Ahan on 05/01/2016 - 09:27

        Thanks!

      • Matt P on 05/01/2016 - 11:46

        assuming they've paid warrantygroup for the extended warranty. The way these things usually go is that they batch them up and pay at the end of the month. If they haven't paid, they might not honor it

    • eediot on 05/01/2016 - 10:14
      +4

      An Ozbargainer that bought extended warranty?

      • Ahan on 05/01/2016 - 10:38
        +2

        For extended warranty that covers built in battery, I think it is worth the money. The battery is guaranteed to fail in three year time even under normal use.

  • AjsGuns on 05/01/2016 - 00:19
    +1

    Ugh, still waiting on a refund from dick smith, paid through paypal. Apparently "3 days", I called paypal up earlier and they said i was protected even if they go under?

  • [Deactivated] on 05/01/2016 - 02:22
    +20

    I posted an AMA on Ozbargain about my time as a Dick Smith Store Manager up to 2013 - Figure I'd link it here in case people wanted some reading material about my time with the business + my opinion on how Anchorage pulled off the IPO.

    • GourmetFoodie on 05/01/2016 - 06:56
      +3

      That was a great thread

    • syousef on 05/01/2016 - 09:51
      +4

      Seems you were wrong about them surviving though.

      • [Deactivated] on 05/01/2016 - 13:03

        I can't believe they were still trading if they literally couldn't make it barely past a week after Christmas before the administrators are dragged in. So yeah, that comes as a huge shock and obviously reveals what's going on cash / debt wise.

        Most of the individual stores would still be profitable. I'll still maintain I'll be very surprised if the whole lot is completely wound up without any takers. Just a matter of who might buy it for next to nothing.

        The brand is completely wrecked now though for sure.

  • Davo1111 on 05/01/2016 - 03:11
    +3

    Kinda saw this coming. 20 emails in 9 days, i thought it was a bit over the top and unsubscribed yesterday as it wreaked of desperation. Well now i know why.

  • GourmetFoodie on 05/01/2016 - 06:57

    Sad as always good to have more options to shop at but not surprising.

    • retiredfeline on 05/01/2016 - 07:14
      +15

      Actually it only bears his name and he's probably embarrassed by the connection. He hasn't owned any of it since 1982 when he sold it, before many OzBers were born.

  • superbird on 05/01/2016 - 07:44
    +4

    Certainly the end of an error

    • retiredfeline on 05/01/2016 - 08:29
      +26

      What an error that was.

    • ozscharfschutze on 05/01/2016 - 21:13
      +2

      Dick is the eventually of an anomaly, which despite Gerry's sincerest efforts had been unable to eliminate from what is otherwise a harmony of retail precision. While it remains a burden to sedulously avoid it, it is not unexpected, and thus not beyond a measure of control. Which has led you, inexorably, here…Ergo, those that refused the discounts, while a minority, if unchecked, would constitute an escalating probabilty of disaster…

      You are here because DSE is about to be destroyed. Its every sales exclusion terminated, its entire existence eradicated.

      The function of the Anchorage is now to return to the source, allowing a temporary dissemination of the vouchers you carry, reinserting the prime scam. After which Anchorage will select from the cash stripping, head count slashing, inventory write downs to rebuild DSE. Failure to comply with this process will result in a cataclysmic system crash killing everyone connected to the sharemarket, which coupled with the extermination of DSE will ultimately result in the extinction of the entire human race.

      • bargaineer on 05/01/2016 - 23:26
        +1

        Drugs are bad, and not cheap. What are you doing on OzBargain?

        • asim1701 on 06/01/2016 - 00:39
          +1

          One too many red pills I think

        • mmd on 06/01/2016 - 01:32
          +2

          Fantastic parody of the matrix

      • Froot Loops on 06/01/2016 - 01:30

        As a trainee Pharmacologist I have to ask. Did you take your Zyprexa today?

  • Sestrooper on 05/01/2016 - 08:01

    There are hard times in life. Dick is no exception.

    Will be sad to see some competition go if this turns out as expected.

  • neonlight on 05/01/2016 - 08:17
    +1

    After Dick Smith is gone one thing for sure is JB and HN will have much more momentum no more competition at all. And then import tax will come in makes Kogan etc not favourable.

    • paloverde88 on 05/01/2016 - 08:19
      +1

      Lets be honest their customer service is virtually non existent.

  • paloverde88 on 05/01/2016 - 08:17

    Official, bankruptcy
    Administrator called in.
    One less competition for harvey norman and jb hifi to deal with.

  • Olokun on 05/01/2016 - 08:18

    Lol Dick Smith on Sunrise atm taking about Aussie Merchandise… no questions regarding the chain that carries his name.

    Edit: Oh there is the question.

    • entropysbane on 05/01/2016 - 09:21
      +3

      I always find it ironic that dick smith talks up local product when in fact his wealth was made on selling cheap imported electronics. A case of do what I say, not what I did. Or is all this latter day protectionism seeking atonement for past sins?
      Dick smith food products are just rebranded local stuff anyway. If it wasn't about dick, why wouldn't he just promote those products under their original name?

      • ESEMCE on 05/01/2016 - 10:08

        As above, Dick Smith the Man has had zero involvement with the Electronics Retailer after he sold it in 1982.

        • leon k on 05/01/2016 - 10:35

          I always forget that the Dick Smith sold out when I was only 2 years old and the stores I remember being great were still under Woolworths!

        • [Deactivated] on 05/01/2016 - 22:45
          +2

          @leon k: Scary to think that Woolworths did something good… haha

  • paloverde88 on 05/01/2016 - 08:22
    +1

    Private equity firms are ruthless they strip the business bare then leave only the bones with maggots after they devour the flesh bit by bit.

    • Olokun on 05/01/2016 - 08:26
      -5

      Woolworths are the ones who allow this to happen, too lazy to manage the chain themselves and sold it for a pittance

  • david1371 on 05/01/2016 - 08:28

    Luckily got a Pay Pal refund 2 days ago on an item I paid for that they never had in stock to begin with. Seems like I got in just in a nick of time.

  • Plasma on 05/01/2016 - 08:36
    +5

    As an ex-employee who left mid-way through the Anchorage acquisition…I saw this day coming.

  • nikey2k27 on 05/01/2016 - 08:57
    +2

    ex-employee very sad see them run what was one a good retailer into the ground.

  • marc86au on 05/01/2016 - 09:11

    I think most expected this to happen sooner or later.

    They have tried compete in electrical and household appliances when the majority of their stores are way too small to allow them to carry enough range to make them a likely destination for shoppers in that market.

    I know if I was after a blender they are one of the last places I would think to look because I would probably have a choice of only 2 models at full RRP.

    The only things I purchased from DSE in recent years were heavily discounted sale items which probably don't make them much money anyway.

    • elusive on 05/01/2016 - 12:28
      +3

      I only discovered they even carried blenders during during the sales last month!

  • lbft on 05/01/2016 - 09:13

    ASX announcement that DSH are entering voluntary administration: http://www.asx.com.au/asxpdf/20160105/pdf/4346lly4rnwjc1.pdf

  • Wally Simmonds on 05/01/2016 - 09:18
    +1

    Waiting for a refund for just over 300 - been nearly a month since the purchase. Guess I can kiss that goodbye now (paid with CC)

    • lbft on 05/01/2016 - 09:22
      +6

      Since it was a credit card, it's worth investigating the possibility of a chargeback with your bank.

      • Wally Simmonds on 05/01/2016 - 10:03

        Yep, already kicked that process off today, hopefully something comes of it.

    • firestormx on 05/01/2016 - 10:56

      What was the refund for? If you paid with CC, open a dispute with your bank.

    • JimB on 05/01/2016 - 11:01

      Paid with credit card… contact your bank. 99.9% sure you will get it back.

    • oz-dave on 05/01/2016 - 11:08

      Try a "charge-back" with the credit card company since you don't have the physical item ;-)

      Edit : Delayed response with similar advice to everybody else :-)

    • RideCurbs on 05/01/2016 - 11:26

      This happened to me, I googled the current CEO, guessed his email from the format and wrote to him. I guessed correctly, and his assistant called me that arvo to sort it out.
      (this was weeks ago)

      Admittedly he's probably pretty busy right now…

      • the-mal on 05/01/2016 - 11:53
        +1

        Actually I'd say he's got all the time in the world now. He probably doesn't have access to his emails anymore though.

      • currentfad on 05/01/2016 - 12:12
        +1

        You emailed the CEO of Dicksmith to get a refund? LOL

        • BartholemewH on 05/01/2016 - 14:33
          +7

          OzBargainers are professionals.

  • ShamelessBargains on 05/01/2016 - 09:32
    +9

    Gotta feel sorry for the staff working at the stores. Know a few mates who work there and now have an uncertain job future. DSE employs a lot of students and it's already hard enough for uni students to find casual employment. Hopefully DSE gets bailed out/restructred/resold and doesn't close for good.

    I think the problem started when they cannibalised their sales by opening stores close together like the Move and DSE in Indooroopilly Shopping centre which are only a few hundred metres apart. The move into new categories like small appliances really shows how desperate DSE was. I reckon they should have focused on their core products more. Anyways that's just my thoughts, it's good to have competition in the market and would be a shame to lose such a big employer as well.

    • theguyrules on 05/01/2016 - 11:08
      +1

      Yeah, I worked there while I was in high school, and a lot of the people I worked with are still there. I feel bad for them.

    • the-mal on 05/01/2016 - 12:00

      Some stores will probably be bought out but the problem with a lot of their stores was size and/or location.

      Unfortunately I'd say the vast, vast, vast majority of DSH employees will be gone in the near future.

      We'll find out soon enough whether it's liquidation or not. If I were a DSH employee I'd be taking the day off to get my resume ready. It sucks for them but it's close to inevitable that they'll lose their jobs.

    • Froot Loops on 06/01/2016 - 01:34
      +1

      I have a few uni mates working in a few different stores and from they facey status's I feel sorry for them. They seem to be getting all the abuse. They have enough issues without someone raging at them over a $20 giftcard. Not their fault. Wish people would see their side also

  • neostarsx on 05/01/2016 - 09:39

    Why is this not a surprise after that silly clearance sale where things were being sold for less than cost.

  • theHMASfriendship on 05/01/2016 - 09:47

    So does this mean an actual clearance sale is on the horizon, rather than one where they're clearing 4 year old sport watches and iphone 4 cases?

    • the-mal on 05/01/2016 - 12:02
      +4

      Doubt it. New stock will be taken back by suppliers, if that fails they'll try to sell it off to other retailers, last option is to sell it to the public. By that stage it'll be mainly only dodgy stock left.

  • SydChamp on 05/01/2016 - 09:49

    Dick Smith appoints McGrath Nicol as administrator

  • wallet72 on 05/01/2016 - 09:58

    I wonder if Mr Dick Smith himself could snap up the DSE chain at a bargain price and restore it to respectability? It was a reputable name when he owned it, and it does have potential to be that again - so long as management and their practices are replaced.

    • JimB on 05/01/2016 - 11:03
      +1

      Even if he got it for free, It would cost too much to get the company back in good shape.

      • chrig on 05/01/2016 - 22:47

        The question is also what is the brand value now - even if somebody else came in it may be too late to recover it (e.g. Retravision)

  • teasatotalling on 05/01/2016 - 10:00
    +2

    Gone within 6 weeks:

    "…the directors were unable to secure support from the company's bankers to provide finance for restocking to see it through the next month to six weeks."
    http://www.abc.net.au/news/2016-01-05/dick-smith-enters-volu…

  • tanksinatra on 05/01/2016 - 10:04
    +19

    Given how badly the stock clearance was handled, I can't say I'm totally surprised.
    Dick Smith couldn't even get their own store staff to put on the price tickets during the sale and they refused to actually disclose what products were on special.
    It ended up being a stupid secretive game of 'guess the price'.
    No wonder there were all these accusations of staff hogging stock - they were the only ones who actually knew the prices!

    Likewise their inventory management is hopeless. I tried to buy a few computer games during the sale - they had the empty boxes on the shelf. Staff couldn't find the games despite being "in stock". Walked out empty handed.

    Pathetic.

    • ebayer007 on 05/01/2016 - 10:21
      +2

      Looks like poor management costed them.

    • whodidthat on 05/01/2016 - 10:22

      So right, customer service is really bad at two near us.

      I went to one, to pick an order up. Took me nearly an hour in the shop as they couldn't find it - and she was sooooooooo slow.

    • Flowerbomb on 05/01/2016 - 12:11
      +11

      Exactly. I hated asking staff about prices on untagged items. Plus overheard the staff bitching about ozbargain releasing the clearance lists. It's like they don't want to sell it to us.

      • mmd on 06/01/2016 - 01:39

        The reason was that sale was leaked here. The intended sale date was Sat.
        The prices were loaded on tues, wed, and thurs so they can prepare the store for what would have been a super crazy day.
        However this wasnt meant to be, and it caught a lot of staff off guard.

  • regenade on 05/01/2016 - 10:17

    I have around $230 in Goft Cards, what do you guys suggest. Just go to nearest store and Buy Up whatever they sell or better some other Gift cards.

    • ojm on 05/01/2016 - 10:22
      +8

      Get in there ASAP and cash in for anything of value. That is, if they will accept them.

    • leon k on 05/01/2016 - 10:25
      +7

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

      "He also stated that due to the financial circumstances of the Group, unfortunately, outstanding
      gift vouchers cannot be honoured and deposits cannot be refunded. Affected customers will
      become unsecured creditors of the Group. "

      • regenade on 05/01/2016 - 10:28

        I am going to the store and see what they say.
        They have 2 X Z623 for $109 each.

      • chiefbodge on 05/01/2016 - 10:29
        +1

        For anyone stuck unable to use DSE gift cards - if you purchased with a credit card in the last 6 months you should be able to request a chargeback from your bank. Source: https://www.moneysmart.gov.au/managing-your-money/banking/di…

        • lbft on 05/01/2016 - 10:38
          +2

          For any Dick Smith gift cards bought from other retailers like Woolworths, it's worth asking that retailer for a refund and seeing if you get anywhere.

      • abc on 05/01/2016 - 10:48

        The physical stores and website are still operational. If they are able to take money they should be able to still take gift cards. DO IT NOW !!!

        • leon k on 05/01/2016 - 10:49
          +1

          That's not how it works.

          If the administrators say no gift cards, then that's it. Final.

        • abc on 05/01/2016 - 10:50
          +1

          @leon k:

          They might not have blocked them on their website yet '-)

        • regenade on 05/01/2016 - 10:51
          +3

          @abc: Websites still accepting cards, going to store now 1st, will place order right in store if required and click and collect right there.

        • chiefbodge on 05/01/2016 - 10:52

          @abc:

          Perhaps but it's certainly a risk because they may be checking the payment method before they send anything out.

          If the website is still accepting gift cards then click and collect might be the best option? First and foremost I would try going into the stores though in case the staff aren't aware yet?

        • oz-dave on 05/01/2016 - 10:56
          +2

          @chiefbodge:

          Go into the store, don't risk "Click and Collect" as they have said

          "deposits cannot be refunded. Affected customers will become unsecured creditors of the Group"

          I managed to spend mine this morning, but I was there at opening time…

        • leon k on 05/01/2016 - 10:56

          @abc:

          But you risk them not sending out the goods.

        • abc on 05/01/2016 - 10:57

          @oz-dave:

          The administrator decision regarding giftcards and deposits was only released at 10:30am.

        • oz-dave on 05/01/2016 - 11:00
          +2

          @abc:

          I had a sleepless night, talked with the guy upstairs, and then I rushed in at opening time.
          It looks like I dodged a bullet - I had a sizeable collection of gift cards !!!

        • JimB on 05/01/2016 - 11:04

          @oz-dave:

          did you buy anything that you really wanted?

        • oz-dave on 05/01/2016 - 11:12
          +1

          @JB1:

          Yes thanks :-)
          I purchased something for a friend and even got the exact model they wanted at a bigger discount than I have been able to find elsewhere in the last few weeks :-)

        • JimB on 05/01/2016 - 11:16

          @oz-dave:

          Lucky :)

        • QuickToThePointless on 05/01/2016 - 11:22

          @oz-dave: which bible verse addresses Gods' stance on retail chains in the hands of administrators gift cards?

        • regenade on 05/01/2016 - 12:15
          +3

          @pointless comment: Ok went into store and got a Nutribullet 900W and Logitech G430 Headphones for $250, paid in full using all the GCs I had got at effective 30% ! So all in All Nutribullet 900W 9-Piece at around $120 and Logitech G430 at around $60 considering what I paid for the GCs. So happy to post that I dodged the bullet this time, not again I will try this.

        • lainey13 on 05/01/2016 - 12:23

          Considering how long it took head office to inform stores about the megafail sale, there's still a chance!

        • oz-dave on 05/01/2016 - 12:38

          @regenade:

          That's an awesome outcome for you, hopefully others can also find some stores who still accept GCs.

        • regenade on 05/01/2016 - 12:39

          @oz-dave: you had some GCs as well, what all did you end up buying ?

    • teasatotalling on 05/01/2016 - 10:24

      Ouch!

    • bdl on 05/01/2016 - 10:35

      If they had proper (or at least, better) systems and processes in place, staff wouldn't be able to hog stock.

    • chiefbodge on 05/01/2016 - 10:47
      +5

      What a selfish and insensitive thing to say. I personally hope that DSE staff hogged as much stock as they could and made a bit of money from selling it - they'll be out of a job soon and that must be really hard for them. I got some good bargains from the DSE sales and had a chat to a nice DSE staff member about what he got for himself and I was happy for him.

  • fozzie on 05/01/2016 - 10:23
    +1

    Sad, I bought a TV, receiver, printer, chrome cast, accessories at dicksmith in the last 8 months. Also lots of people will loose their jobs, not good at all.

    • QuickToThePointless on 05/01/2016 - 11:24
      +3

      I think their jobs ahve been loose for the last 12 months…just hanging by a thread

  • Buy1tN0w on 05/01/2016 - 10:27
    +2

    Be interesting to see how David Jones goes. Will they buy their own departments so to speak? All in all sad for the people affected.

    • inherentchoice on 05/01/2016 - 16:14
      +1

      I can picture the headlines… "David Jones screwed by Dick: pushes Dick back out"

      • whodidthat on 05/01/2016 - 16:57
        +1

        Safe withdrawal

      • Froot Loops on 06/01/2016 - 01:40

        Thats F'ed bahahha

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