Dick Smith stores going bust?

[bob10]

Why Dick Smith could be on the brink of going bust | The New Daily (http://thenewdaily.com.au/money/2016/01/04/certainly-possible-dick-smith-go-bust/?utm_source=SilverpopMailing&utm_medium=email&utm_campaign=20160105%20The%20new%20Daily%20(1)&utm_content=&spMailingID=24379129&spUserID=MTIxODgyNjMyMTEwS0&spJobID=720357338&spReportId=NzIwMzU3MzM4S0)

[bsperka]

Too expensive as well. I looked at getting some headphones from them. $78 on special. Officeworks had them for $50 normally; $37 on special. 2 for less than the price of 1.

[JDNSW]

According to reports this morning their bankers have appointed receivers.

John

[rover-56]

Dick doesn't own it, I think Woolies does.
Pity his name is still attached to the store, it was the place to go for radio and hobbies once, not any longer.

Terry

[bob10]

Dick doesn't own it, I think Woolies does.
Pity his name is still attached to the store, it was the place to go for radio and hobbies once, not any longer.

Terry

Dick Smith sold to Woolworths for $20 million, and holds no shares in the company. It's all in the article.

Edit,- The company is now in private equity management. As above, all in the article.

[Homestar]

Yeah, I haven't shopped there since it stopped being an electronics hobby shop...

[Dark61]

me too - when I first got here it was similar to a store in pommy land called Maplins. I now usually head for Jaycar or most often , the keyboard.
cheers,
D

[Eevo]

i used to like jaycar but now they are expensive and i find im returning 1/3 of items for warranty.

[JDNSW]

.....
Edit,- The company is now in private equity management. As above, all in the article.

Actually, the private equity floated it a few years ago and it is now a public company.

John

[ramblingboy42]

they have gone into voluntary administration......

I have purchased quite a few things there over the years and found their service to be excellent , their prices very competitive and aftersales service excellent.....so I'm interested to see why they aren't trading well.

[ramblingboy42]

i used to like jaycar but now they are expensive and i find im returning 1/3 of items for warranty.

I have had similar problems,,,,their equipment build quality is very lacking.

[rick130]

About three weeks before Christmas I read in the Business section of the Herald that they were having trouble servicing debt and were offering big discounts in December to move stock.
Happened to walk into the Majura store and picked up a Panasonic telly for a damned good price, and todays Herald mentioned the sale didn't really help too much.

[bob10]

From what I can gather, Dick Smith sold the company to Woolworths, Woolworths sold it to a private equity firm Anchorage Capital Partners, who, 12 months later floated it on the market for $520 million. To pay Woolworths, Anchorage sold off most of the stock. After floating, they took out bank loans to buy new stock. $ 120 million worth. When things started to go sour, the Banks & suppliers stopped extending credit.

Dick Smith: What is wrong with business as usual for such a high-profile company? - ABC News (Australian Broadcasting Corporation) (http://www.abc.net.au/news/2016-01-05/what-is-wrong-with-business-as-usual-for-dick-smith/7069546)

[scarry]

From what I can gather, Dick Smith sold the company to Woolworths, Woolworths sold it to a private equity firm Anchorage Capital Partners, who, 12 months later floated it on the market for $520 million. To pay Woolworths, Anchorage sold off most of the stock. After floating, they took out bank loans to buy new stock. $ 120 million worth. When things started to go sour, the Banks & suppliers stopped extending credit.



So now the business is probably worth…..jack nothing…….

[Homestar]

So now the business is probably worth?..jack nothing??.

Around 20 cents per share when trading was halted I think, down from 2.20 so,etching when floated earlier this year, so pretty close...

[bob10]

So now the business is probably worth?..jack nothing??.

And should be snapped up by some rich china man, who, with a simple business plan, and not trying to compete with the big players, [ A la Dick Smith, using the K.I.S.S. principle ], should turn a profit again.

[mikehzz]

What stinks is they are now not honoring gift vouchers. What a rort, selling gift vouchers leading up to christmas that are now worthless.

Dick Smith gift card debacle | Customer told: (http://www.news.com.au/finance/business/retail/dick-smith-gift-card-recipient-told-you-have-nothing-to-worry-about/news-story/9841e040b5c763c99e32f0e31baf9572)

[JDNSW]

Isn't it a criminal offence to trade while insolvent? Seems that is what they have been doing.

John

[bob10]

What stinks is they are now not honoring gift vouchers. What a rort, selling gift vouchers leading up to christmas that are now worthless.

Dick Smith gift card debacle | Customer told: (http://www.news.com.au/finance/business/retail/dick-smith-gift-card-recipient-told-you-have-nothing-to-worry-about/news-story/9841e040b5c763c99e32f0e31baf9572)

I agree. Some how I can't believe management didn't know where the company was headed. Now, I don't pretend to understand big business. But, Dick Smith sold to Woolworths for $20 million, nothing wrong with that. Woolworths sold to Anchorage capitol for , I think, $50 million. That seems ok. Anchorage , using the good will [ think that's what it's called] in the Dick Smith name, float the company for $520 million. Now, who got rich out of that? Certainly not the share holders, who bought in good faith.

I am probably naive, but there seems to be something rotten in Denmark. It's almost as though some smart operators traded on the good name of Dick Smith, raised $ 520 million in the float, then took the profits, and trashed the business, without the slightest thought for the people working for them, or the share holders, whom you would have to say, were conned . As I said, I don't know about big business, so if I'm completely wrong, just let me know, nicely. At the least, it was incompetence. At worst......

[Homestar]

That sounds about right Bob. Incompetence or deliberate rorting. No winners either way.

[mikehzz]

I agree. Some how I can't believe management didn't know where the company was headed. Now, I don't pretend to understand big business. But, Dick Smith sold to Woolworths for $20 million, nothing wrong with that. Woolworths sold to Anchorage capitol for , I think, $50 million. That seems ok. Anchorage , using the good will [ think that's what it's called] in the Dick Smith name, float the company for $520 million. Now, who got rich out of that? Certainly not the share holders, who bought in good faith.

I am probably naive, but there seems to be something rotten in Denmark. It's almost as though some smart operators traded on the good name of Dick Smith, raised $ 520 million in the float, then took the profits, and trashed the business, without the slightest thought for the people working for them, or the share holders, whom you would have to say, were conned . As I said, I don't know about big business, so if I'm completely wrong, just let me know, nicely. At the least, it was incompetence. At worst......

I think you have hit the nail on the head with your summation and I don't think it was incompetence at all. If any of us stole millions of dollars we'd be strung up.

[Ferret]

Yep, looks like it was set up to fail to maximise the take for the private equity partners.

From what I read private equity ran the stock down making the books look good. Public investors bought a shop with little to no stock. What stock was left were unpopular lines which could not be sold.

[scarry]

I agree. Some how I can't believe management didn't know where the company was headed. Now, I don't pretend to understand big business. But, Dick Smith sold to Woolworths for $20 million, nothing wrong with that. Woolworths sold to Anchorage capitol for , I think, $50 million. That seems ok. Anchorage , using the good will [ think that's what it's called] in the Dick Smith name, float the company for $520 million. Now, who got rich out of that? Certainly not the share holders, who bought in good faith.

I am probably naive, but there seems to be something rotten in Denmark. It's almost as though some smart operators traded on the good name of Dick Smith, raised $ 520 million in the float, then took the profits, and trashed the business, without the slightest thought for the people working for them, or the share holders, whom you would have to say, were conned . As I said, I don't know about big business, so if I'm completely wrong, just let me know, nicely. At the least, it was incompetence. At worst......

Probably all legal:mad:

Someone needs to end up like the guys who ran Kleenmaid while it was insolvent.

One is in jail,two get sentenced in March.

[bob10]

Does any one know who the main players in the company are?

[Eevo]

Clueless mum n dad investors

[bob10]

Found them.

Allan Moss (http://www.anchoragecapital.com.au/allan-moss)

[bob10]

DICK SMITH: Now the blame game begins | Business Insider (http://www.businessinsider.com.au/dick-smith-now-the-blame-game-begins-2016-1)

[rick130]

Why Dick Smith shareholders lost and private equity won (http://www.smh.com.au/money/investing/why-dick-smith-shareholders-lost-and-private-equity-won-20160108-gm1t6g.html)

[Fluids]

See Coles announced today that they will honor Dick Smith gift cards/vouchers.

[Eevo]

i think woolworths did something simmilar

[bob10]

Why Dick Smith shareholders lost and private equity won (http://www.smh.com.au/money/investing/why-dick-smith-shareholders-lost-and-private-equity-won-20160108-gm1t6g.html)

Thanks for that, makes things a little clearer. [ I think]. And to think they hung Ned Kelly. love this comment;

" It's like bacon and eggs, the hen is involved but the pig's committed."

[rick130]

Thanks for that, makes things a little clearer. [ I think]. And to think they hung Ned Kelly. love this comment;

" It's like bacon and eggs, the hen is involved but the pig's committed."


Yep, it's a ripper, isn't it. :D

I think it sums it up nicely.

[bob10]

As Geoff Toovey would say, " there must be an investigation".

Why Aussie icon Dick Smith crashed and burned | The New Daily (http://thenewdaily.com.au/money/2016/02/25/dick-smith-aussie-icon-crashed-burned/?utm_source=SilverpopMailing&utm_medium=email&utm_campaign=20160226%20The%20New%20Daily%20(1)&utm_content=&spMailingID=24815255&spUserID=MTIxODgyNjMyMTEwS0&spJobID=744229924&spReportId=NzQ0MjI5OTI0S0)

[JDNSW]

Ultimately, it seems to me that the investors who paid far more than the company was worth when it was floated are the ones primarily responsible. Certainly, you can say they were misled, but anyone putting money into something should have at least had a warning flag raised by value of the company having apparently risen twenty times in a couple of years.

John

[bob10]

More brands to follow Dick Smith.

More brands could follow Dick Smith into oblivion | The New Daily (http://thenewdaily.com.au/money/2016/02/26/big-brands-follow-dick-smith-oblivion/?utm_source=SilverpopMailing&utm_medium=email&utm_campaign=20160227%20The%20New%20Daily%20(1)&utm_content=&spMailingID=24825200&spUserID=MTIxODgyNjMyMTEwS0&spJobID=744413863&spReportId=NzQ0NDEzODYzS0)

[bob10]

Dick Smith on line business sold.

Dick Smith (http://view.e.dicksmith.com.au/?qs=8b9e8961e540adaee469eca3f8c187c414405df9d2800d c39de15e2112db8c3d5f1644bc17d3394173d9b51a361b6730 31b1a15ac1ed6fac080cb3094d0c498f)

[Eevo]

sold to kogan!

[Ausfree]

sold to kogan!

That's got me scratching my head. Why would Kogan set up another on-line business selling basically the same products.:confused:

[Eevo]

That's got me scratching my head. Why would Kogan set up another on-line business selling basically the same products.:confused:


only thing i can think of is larger share of the market

[cuppabillytea]

I think I'll keep my money under the mattress. :confused:

[JDNSW]

That's got me scratching my head. Why would Kogan set up another on-line business selling basically the same products.:confused:

To get Dick Smith's customer address list.

John

[scarry]

That's got me scratching my head. Why would Kogan set up another on-line business selling basically the same products.:confused:

Because there is good money in it??.

[bob10]

Because, that is business.

[cuppabillytea]

And because the infrastructure and staff are already in place for a rapid expansion.

[bob10]

And because the infrastructure and staff are already in place for a rapid expansion.

From what I can gather, Kogan have purchased the intellectual property [ think that means on line only] and will only be using the Dick Smith name on line.

[cuppabillytea]

From what I can gather, Kogan have purchased the intellectual property [ think that means on line only] and will only be using the Dick Smith name on line.

Thanks Bob. Shot my theory down before it was off the ground. :p

[Ausfree]

From what I can gather, Kogan have purchased the intellectual property [ think that means on line only] and will only be using the Dick Smith name on line.

Bob, you are quite correct, that is what I have heard also.:)