Dick Smith Receiver Sale Described As One Big “Con”.

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The Dick Smith receivers, Ferrier Hodgson are believed to be under investigation by the Australian Competition and Consumer Commission (ACCC) over their so called ‘Receivers Sale’.

According to sources complaints have been lodged with the
ACCC concerning the discounts being offered.

An Investigation by ChannelNews and SmartHouse reveals that
several branded goods such as LG and Samsung TV’s are significantly more
expensive at Dick Smith stores than at Harvey Norman, JB Hi Fi or Bing Lee
stores.

A Samsung 60″ TV model number UA60J6200 is being marked
up at Dick Smith stores in Chadstone, Victoria at $1,819.

The same TV is selling for $134 cheaper at Harvey Norman. To
further seduce consumers into buying this model the Dick Smith receivers are
offering ‘Receiver Sale’ saving of $230.

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Harvey Norman is not offering any sale discounts.

An LG 60″ Smart TV 60LF6300 is ranged in the Dick Smith
receiver sale at $1,899, the same TV is being sold for $1,679 a saving of $220.

Ironically Dick Smith claims that consumers are saving $600
by buying this TV from their stores.

In both the PC wearable and accessories categories goods are
more expensive at Dick Smith stores than at other consumer electronics stores.

A sales assistant at one major Victorian store said.
“Consumers are coming into the store believing that there are bargains
because we have been placed under administration, when they check on their
smartphones, what price the same goods are selling for in other stores they
leave. There really is no sale, it’s all one big con”.

A Chadstone staff member said “Things were cheaper when
Dick Smith was running the stores. As soon as the receivers moved in we were
told to jack up prices. I suppose the banks want to get their money as quick as
they can. It’s not looking good”.

Earlier this week Ferrier Hodgson moved to close 27 Dick
Smith concessions stores at David Jones stores throughout Australia.

At one concession store in Victoria a Manager said
“Dick Smith at David Jones has never worked. In some cases, prices were
higher in a concession store than at a regular Dick Smith stores. Woolworths
was going to dump Dick Smith anyway prior to the Company being placed into
administration.

The Electronics Powered by Dick Smith outlets within David
Jones employ two full-time employees, 78 part-time workers, and 101 casual
staffers.

In other moves Ferrier Hodgson has moved to advertising the
Dick Smith stores in Asia.

Back in November when we identified that Dick Smith stores
were struggling a potential buyer from Hong Kong approached ChannelNews to obtain
information about the stores.

They said at the time that doubted that there was any
“value” left in Dick Smith stores.

According to sources still working at the mass retailer all
of the management associated with Nick Aboud have “gone”.

“The receivers have already drawn up a plan to mass
close stores, during the past weeks they have bought operational costs under
control” they said.

Ferrier Hodgson retail partner James Stewart “We don’t
want to leave any stone unturned,” said Ferrier Hodgson retail partner
James Stewart, who took control of Dick Smith’s 393 stores at the behest of
lenders on January 5 after the company appointed McGrathNicol administrators.

“Most of the world’s consumer electronics retailers are
supplied through Asian markets.  We want
to make sure we give everyone an opportunity,” Mr Stewart said.

Ferrier Hodgson claim that they have has received at last 50
expressions of interest for Dick Smith’s assets but according to sources, most
were organisations who took copies of the offer document which contained
historical sales data, store locations a detailed 70-page information
memorandum to selected parties.

The deadline for non-binding expressions of interest closing
today Wednesday 27th of January.

The receivers claim that they have already commenced
discussions with a core group of serious buyers and will draw up a formal short
list after the offer deadline closes this week.

Mr Stewart told Fairfax Media that he welcomed the decision
by the administrator, McGrathNicol, to seek to postpone the second meeting of
Dick Smith’s creditors until August, saying it would give the receivers more
time to complete asset sales and liaise with landlords.

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