Dick Smith to close remaining Stores in Australia and New Zealand.
Dick Smith stores in Australia and New Zealand are being forced to close after the receivers Ferrier Hodgson were unable to find a suitable buyer for the company.
Electronics retailer Dick Smith went into receivership in January 2016.
Dick Smith’s remaining 363 stores (301 in Australia and 62 in New Zealand) will close, resulting in the loss of 2,890 staff members (2,460 staff in Australia, and 430 in New Zealand).
Dick Smith Origins:.
Dick Smith founded the company in 1968 and sold it in the 1980s to Woolworths, who sold it to the private equity firm Achorage Capital Partners in 2012.
Mr Smith said he was angry and disappointed that it was closing, laying the blame at the feet of the owners.
Mr Smith appears not to have much sympathy for investors, who he said should have known the company was not worth $520 million, but he said he empathised with the staff.
Dick Smith Underpaid Workers:.
Earlier this month (Feb 2016) the Fair Work Ombudsman launched an investigation after evidence emerged the failed chain might have underpaid its employees.
Ferrier Hodgson discovered the discrepancies, worth as much as $2 million.
Recent History of Dick Smith Electronics.
Woolworths bought Dick Smith in 1982, for about $25 million.
Anchorage Capital Partners bought Dick Smith in 2012, for about $94 million
In December 2013, Dick Smith shares were floated on the Stock Exchange at $2.20 each, valuing the company at about $520 million.
The last traded share price, on 31st December 2015, was 35.5 cents, making a company value of about $84 million, much closer to the original value when bought by Anchorage Capital Partners.
Sources:
http://www.abc.net.au/news/2016-02-25/dick-smith-stores-to-close-after-receivers-unable-to-find-buyer/7200006
http://www.abc.net.au/news/2016-02-05/dick-smith-investigated-over-employee-underpayment/7142694
http://www.abc.net.au/news/2016-01-05/dick-smith-enters-voluntary-administration/7067798
http://www.9news.com.au/national/2016/02/25/22/45/dick-smith-angry-at-previous-owners-utter-dishonesty