No Real Bidders For Dick Smith, Supplier Support Evaporates

X

No real bidders have emerged for the Dick Smith retail chain with both private equity firms and overseas investors failing to put in “realistic” bids for the retail chain that is now under administration.

A major sticking point has been the estimated $50M that is needed to restock the struggling chain and the exit of management to run a restructured operation. 

Insiders are tipping that a move will begin next week to start closing stores with the business set to be wound up and placed into liquidation. 

Some store leases could be taken over by other retailers these include the Move stores and some New Zealand stores. 

Another sticking point is that several large suppliers have said that they will “not” support a restructured group on the basis that the cost of servicing an additional supplier is “not worth the investment”.

A former senior Samsung executive said “The last thing Australia needs is another consumer electronics retailer. By consolidating around the likes of JB Hi Fi, The Good Guys and Harvey Norman manufacturers can cut their operational costs, reduce their exposure while building their relationship with these key retailers”. 

“The exit of Dick Smith from the market could lead to retrenchments among vendors who had heavy exposure to Dick Smith, this could include account managers and merchandisers”.  

“Another problem for manufacturers is that the Dick Smith brand is seriously damaged and there is no evidence that consumers will shop at a rejuvenated Dick Smith as a result brands like Samsung, Panasonic, Apple, Google, Lenovo and Microsoft don’t want to be associated with a failed retail brand”. 

One private equity investor, who decided not to submit an expression of interest, argued this latest turnaround at Dick Smith necessitated a “rebuild from the ground-up”.

Ferrier Hodgson management said that they want to sell the chain in one line.

Anchorage bought Dick Smith for $94m in 2012 from Woolworths and floated it at the end of 2013 for $520m. Upon its collapse, Dick Smith was valued by the market at $84m.
MaxRanger4K Leaderboard 728x90 No Real Bidders For Dick Smith, Supplier Support Evaporates
241211 SAV Ruark CNewsJan Leader No Real Bidders For Dick Smith, Supplier Support Evaporates
Flick of a switch 728x90 1 No Real Bidders For Dick Smith, Supplier Support Evaporates
GOTHAM 728px x 90px No Real Bidders For Dick Smith, Supplier Support Evaporates
Hisense KV BannerAd 728 90 No Real Bidders For Dick Smith, Supplier Support Evaporates
BlueAnt 4SQM PumpAirUltra 728x90px No Real Bidders For Dick Smith, Supplier Support Evaporates
hitachi banner 728x90 No Real Bidders For Dick Smith, Supplier Support Evaporates
AU X8 Banner 728x90 No Real Bidders For Dick Smith, Supplier Support Evaporates
Uniden Channelnews SoloX July 2024 728x90 1 No Real Bidders For Dick Smith, Supplier Support Evaporates
Westan 728x90px No Real Bidders For Dick Smith, Supplier Support Evaporates
HAIER Series 600 FLW HPD Pairs 728x90 1 No Real Bidders For Dick Smith, Supplier Support Evaporates
728 x 90 No Real Bidders For Dick Smith, Supplier Support Evaporates
ChannelNews AZ100 728x90 No Real Bidders For Dick Smith, Supplier Support Evaporates
Arlo EOFY25 728x90 No Real Bidders For Dick Smith, Supplier Support Evaporates
728x90 No Real Bidders For Dick Smith, Supplier Support Evaporates
BEL2535 BPB024 4SQ Banners 728x90 No Real Bidders For Dick Smith, Supplier Support Evaporates
728x90 No Real Bidders For Dick Smith, Supplier Support Evaporates
Px7 S3 728x90 1 No Real Bidders For Dick Smith, Supplier Support Evaporates
728x90 No Real Bidders For Dick Smith, Supplier Support Evaporates
ELX DIG Crosscat Promo 728x90 Mar25 No Real Bidders For Dick Smith, Supplier Support Evaporates
Marshall 728x90 1 No Real Bidders For Dick Smith, Supplier Support Evaporates
JBL TourPro3 728x90 No Real Bidders For Dick Smith, Supplier Support Evaporates
Skullcandy 728x90 1 No Real Bidders For Dick Smith, Supplier Support Evaporates
FA 979 HN MDF SG14 14gen 728x90 1 No Real Bidders For Dick Smith, Supplier Support Evaporates
728X90 1 No Real Bidders For Dick Smith, Supplier Support Evaporates


YOU MAY ALSO LIKE