An iconic Australian brand, Dick Smith, is set to close the doors of its 363 stores across Australia and New Zealand.
With four core brands: Dick Smith, Electronics powered by Dick Smith, Move, and Move by Dick Smith, the brand had over 3300 employees and annual sales of $1.3 billion. After being placed into receivership on 4 January following voluntary administration, the sale of the physical operations of Dick Smith failed to produce a viable buyer.
However, the brand will perpetuate digitally as online retailer, Kogan.com, bought Dick Smith’s online retail business. Kogan.com is set to take over the online operations from 1 June 2016.
Founder and CEO of Kogan.com, Ruslan Kogan, stated, “Dick Smith is an iconic Australian brand and we’re thrilled to be able to keep it alive, as well as Aussie owned and run. I remember as a kid always visiting Dick Smith to look for parts to upgrade my computer. There is a strong history of passion in the Dick Smith community for how technology can improve our lives, and we look forward to helping making it more affordable and accessible for all.”
Currently, the Dick Smith receiver, Ferrier Hodgson, is said to be talking with ASIC regarding the rapid failure of the company.
The Dick Smith CEO, Nick Abboud, had previously stated, in only August last year, that the full year net profit for 2015-16 would be increased to between $45 million and $48 million.
According to reports, ASIC is also investigating.
In relation to current Dick Smith employees, some staff will be relocated to nearby stores while others will be made redundant. However, employee entitlements are expected to be paid in full as they are prioritised over secured credit claims.
Receiver James Stewart says, “We would like to thank the Dick Smith employees for their support during the controlled closure process,”.
“This is a difficult and uncertain time for them and we have really appreciated their commitment.”