Dick Smith stores going bust?

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Originally Posted by bob10

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......

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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.

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.

Quote:

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Originally Posted by bob10

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......

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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.

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

Clueless mum n dad investors

Found them.

Allan Moss

DICK SMITH: Now the blame game begins | Business Insider

Why Dick Smith shareholders lost and private equity won

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

i think woolworths did something simmilar