Dick Smith stores to close

25/02/2016 - 13:41

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Two business units of technology retailer Dick Smith could live to see another day, as receivers today announced that the majority of the empire will be shut down after a number of proposals to acquire the company were all deemed unacceptable.

Dick Smith will close after 48 years in business.

Two business units of technology retailer Dick Smith could live to see another day, as receivers today announced that the majority of the empire will be shut down after a number of proposals to acquire the company were all deemed unacceptable.

The company entered administration in January, with receivers having then undertaken a program to find a buyer for all or part of the business.

In a letter to staff today, receivers from Ferrier Hodgson said there had been a significant number of expressions of interest but none had been acceptable.

All offers were either highly conditional or below liquidation value.

“Now that all avenues for a sale of the Dick Smith and Move business in Australia and New Zealand have been exhausted, the receivers and managers have no option but to commence a controlled closure program for the entire business excluding Move Airport stores,” the letter said.

Business News understands a further Dick Smith controlled entity, Apple product supplier Mac-1, had been undergoing a separate process and may not be affected by the closure.

Mac-1 was purchased by Dick Smith roughly 18 months ago for the reported price of $1.

The chain has two stores in Western Australia, at Westfield Innaloo and in the Perth CBD, and a number of others interstate.

It is focused on education and corporate IT solutions.

Move Airport stores will continue to operate as normal, with the receivers in ongoing discussions regarding it’s future.

That brand is focused on Sydney Airport, with about half a dozen stores opening across the international and domestic terminals beginning last year.

For the remainder of the Dick Smith empire, however, the next move is a stock realisation sale, for which the receivers have appointed international company Hilco.

Stores will close within eight weeks.

Update, March 4th 2016

Ferrier Hodgson announced on March 4th that the Move Airport stores at Sydney International Airport would close, with receivers unable to reach agreement to sell the assets.

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