Dick Smith Electronics In Trouble?

[VK2VHF]

Went last week and purchased the newest model chicken band UHF. Ticket price was $350 but given the sale I asked the fellow to scan it and he says "ummmm $89 thanks". At that price I could not resist.

Sent from my SM-G900I using Tapatalk

[VK5ZLR]

Poor old Dick must be pretty dissapointed about how they ran his business into the ground.

[VK4GHZ]

Statement to ASX

A second, brief, announcement read

The securities of Dick Smith Holdings Limited (Company) will be suspended from quotation immediately in
accordance with Listing Rule 17.3, following the Company’s appointment of a Voluntary Administrator.

That's what happens when you enter into an overcrowded space, all doing much the same thing.

[VK3ZAZ]

Poor old Dick must be pretty dissapointed about how they ran his business into the ground.

Hasn't been "HIS" Biz for decades.
80% share drop and 2 profit warnings.
Trading halt does not bode well does it?
Previous profits 45 to 48 MILL
This year a sad $40 million.
Life is tough
Clearing Sale like the 2M radio above labelled by another millionaire Hardly Normal as "MAD"
Woolies sold it to ANchorage for 94$MILL $2.20 per share..
Now trading at 35.5 cents
Rivals JB and Hardly Normal shares up in light..

If it was still trickys he could always sell the Caravan (Cessna) or the Bell

[VK5TM]

If it was still trickys he could always sell the Caravan (Cessna) or the Bell

If it was still trickys, very doubtful it would be in the position it is today.

[VK3FM]

For those of you who may have worked in the supermarket industry (or retail industry in general) for any period of time, as I did for many years, when Woolworths owned the business you will know that DSE was trading poorly, and its financial return performance was well below both the expectations of both the owners (Woolworths) and the financial sector analysts for a very long time, and DSE possibly only survived as a part of the Woolies empire for so long because, no matter how bad the problems were it was always saved because it was about 1.5% of Woolies total turnover and they could hide its results or, as was more likely, just ignore them while bigger and better things were in the wind. Like moving from the No 2 retail chain in VK to No 1.

As an adjunct to this, when Woolies first purchased DSE the FIRST thing they did was change its trading persona, and DSE were never the same. Ever. Also remember, DSE were in the sort of business they are in now for quite some time before Harvey Norman, to name but one opponent, ever came on the scene.

Performance will always win - in the end.

Yes, I think its goodbye old friend.

Ernie VK3FM.

[VK3BQ]

this is an interesting read. someone made a lot of money on the demise.

http://www.gemcapital.com.au/blog/item/ ... -time.html

[VK4TI]

Dicks could be running fine read this http://www.smartoffice.com.au/business/ ... pears.aspx as an explanation about corporate raiding
Damn shame

[VK4TI]

"VK3BQ"this is an interesting read. someone made a lot of money on the demise.

Oh snap

[ZL3MF]

I think the big downfall with DSE was moving away from the hobbyists and becoming another Harvey Norman with no point of difference, often pricewise DSE could not compete with the other opposition stores.
Here in New Zealand Jaycar have filled the hobbyists needs and here in Christchurch their store is huge and always packed with punters. Would love to know how they are doing financially!!!

Mike ZL3MF

[VK3ZAZ]

see HWT
In receivership
They say Ïts a lost cause"
Hardly normal sticks the boot in as well
Merry Xmas Jerry he would be shocked if a buyer is found what a charming cretin..
he said he got a shock when Woollies sold it.
Tricky dick sold it in 1982
Woolies sold it off for big profit after buying in at $100MIL
Anchorage floated it at $M520??
$60 mill written off stock before Xmas
I bought an ASUS for $258 down from $554 now warranty not worth jack s**t.
I thought at time too good to be true whats the catch?
Catch 22..
shares were worth 35.5 cents until suspended from trading.
receivers called in
Vouchers gone
deposits gone
warranties not worth the paper they are written on
393 stores
owes $4M which Is chicken s**t
3300 workers on the edge
DSE GONE?
Or will someone buy in as fire sale at bargain basement price.

[ZL3MF]

see HWT
In receivership
They say Ïts a lost cause"
Hardly normal sticks the boot in as well
Merry Xmas Jerry he would be shocked if a buyer is found what a charming cretin..
he said he got a shock when Woollies sold it.
Tricky dick sold it in 1982
Woolies sold it off for big profit after buying in at $100MIL
Anchorage floated it at $M520??
$60 mill written off stock before Xmas
I bought an ASUS for $258 down from $554 now warranty not worth jack s**t.
I thought at time too good to be true whats the catch?
Catch 22..
shares were worth 35.5 cents until suspended from trading.
receivers called in
Vouchers gone
deposits gone
warranties not worth the paper they are written on
393 stores
owes $4M which Is chicken s**t
3300 workers on the edge
DSE GONE?
Or will someone buy in as fire sale at bargain basement price.

Steve warranty is covered by the manufacturer not the store unless it is a DSE branded product of course, even then here in NZ that is covered by the Consumers Guarantees Act.
Not sure if anyone would be interested in buying the company….Here in NZ the Warehouse just brought out Noel Lemmings axed Bond & Bond Just to get more brands they did not have in the Warehouse stores.
Retail is a hard business to be in period…..

My 2c

[VK2JDS]

Warranties are not provided by the stores, its the manufacturers that have to cover warranty repairs or replacement of defective product.
So dont worry, if the laptop plays up just ring or email Asus and they will sort it out.

Its dissapointing the management allowed giftcard and layby sales to continue knowing full well that the receivers were imminent.
This is not the fault of the individual stores, as they assumed they would trade out of it, but upper management needs a kick in the @rse.

So, things we have learnt, to take away from this experience : if we see discounts from a retailer that are huge, and scuttlebutt talk about them being in trouble, its probably wise not to layby or buy giftcards from them ! Which major retailers wil be next to fall ? M@sters perhaps ?

73 from the bush

[VK3ZAZ]

true but buyers always chase bargains and as they say if it sounds too good to be true proably is.
Hindesite? A wonderful tool used by many to justify the decision making process after the fact..if only we had known lol

[VK4GHZ]

FYI...



Source

[VK4GHZ]

Former marketing director, Dick Smith employee and Jaycar founder, Gary Johnston, took out the ads in the Australian Financial Review after seeing Dick Smith's collapse as an opportunity to grow his thriving Jaycar Electronics retail chain.

He said he would be pleased if he picked up half a dozen former Dick Smith premises.

"We're already in negotiations with a number of landlords. We're interested in the retail strips and good, free-standing sites, but not the shopping centres," he told the AFR.

"The great bulk of our customers are men, who have a deep-seated dislike of shopping centres."

Source: http://www.huffingtonpost.com.au/2016/0 ... 05390.html

[VK3ZAZ]

Went last week and purchased the newest model chicken band UHF. Ticket price was $350 but given the sale I asked the fellow to scan it and he says "ummmm $89 thanks". At that price I could not resist.

Sent from my SM-G900I using Tapatalk

Got an email saying all surplus stock on sale NOW

[VK3FM]

Whilst it may be of only passing interest to those here, it is truly remarkable to note that Woolworths has decided to sell/fold/dump (call it what you want) their Masters hardware chain because of insurmountable issues

It is further interesting to reflect that Woolworths is bailing out of Masters for EXACTLY the same reason they got rid of DSE - that is, they bought/invested in a business they did not know how to run. They hung on to DSE for much longer than for Masters - but only because of the scale of the problem.

Somewhere in Business 101 there is an edict - 'Stick to the knitting'. Never happens , of course, 'cause us humans insist we are indestructible!

Ernie VK3FM.

[VK3YE]

Somewhere in Business 101 there is an edict - 'Stick to the knitting'. Never happens , of course, 'cause us humans insist we are indestructible!

Having said that, the two supermarket conglomerates have gone well beyond their 'knitting'.

Eg petrol stations, liquor, hotels and, at least for Woolies, gambling.

[ZL3RC]

Well looks like its finally happened.
NEWS item over here tells me that Dick Smith Electronics has finally gone belly-up in Aus. but interestingly its saying that the NZ operation will not be affected.
It was my understanding that the two operations where linked in some way.
I think a trip to a DSE store may be in order, you never know what "deals" may await inside

I feel for the 2300+ staff that will be thrown out on the street. Never a good time to lose a job but at least it wasn't just before xmas as it could have so easily been.

Roger ZL3RC