Dick Smith gooooooone?

jegga

Into receivership , I guess Harvey Norman were one of the main reasons . It seemed odd for them to go into tvs etc, sad too see all the same. 
<a data-ipb='nomediaparse' href='http://i.stuff.co.nz/business/industries/75618531/Dick-Smith-receiver-and-voluntary-administrator-appointed'>http://i.stuff.co.nz/business/industries/75618531/Dick-Smith-receiver-and-voluntary-administrator-appointed</a>

Virgil

Yeah they largely changed their profile 
Back in the day it was a place you went to to get odds and ends for electronic use, I mean who the fuck would but a tv from Dick Smith?

jegga

Yeah , I think they were selling their own brand of TV DSE . That sort of suggested that it was Chinese junk with their label on it, I think not selling electronic bits and pieces gave Jaycar a boost since they sell that stuff now.

NTA

Interesting - when they were part of our organisation, they were always a strange fit. Basically zero crossover with any other division, even the department store we have here in Oz that sold some consumer electronics.
 
Dick Smith was always a nerd store e.g. RadioShack style thing I guess.
 
They were offloaded for $50M, then their value increased to $300M. Now this? Fuck.

No Quarter

I used to work for Dick Smiths when I was studying IT. Was a pretty cool place to work, the staff discounts on DSE branded stuff was great (like ethernet cables etc). Although I did end up walking out on the job, but that was because the manager was a complete ass.
 
I agree re: Jaycar. I think they lost a lot of loyal customers when they stopped stocking electronic bits and pieces. I would often have to tell customers to "go to Jaycar for that". Not a good situation when you are sending customers to another business.

The managers were always talking about how hard it was to compete with Harvey Norman.

taniwharugby

<blockquote class="ipsBlockquote" data-author="Virgil" data-cid="550618" data-time="1451944804">
<div>
Yeah they largely changed their profile 
Back in the day it was a place you went to to get odds and ends for electronic use, I mean who the fuck would but a tv from Dick Smith?
</div>
</blockquote>
My parents...although when the DSE one crapped out (under warranty) I convinced them to pay a bit more,and buy another brand at DS.

rotated

This is a <a data-ipb='nomediaparse' href='http://webcache.googleusercontent.com/search?q=cache:6ejGUtuY55oJ:https://foragerfunds.com/bristlemouth/dick-smith-is-the-greatest-private-equity-heist-of-all-time/+&cd=1&hl=en&ct=clnk&gl=us'>pretty interesting read</a> from back in October detailing how things got where they did (post Woolies at least). Had to use Google Cache as the original site is down.

Godder

Don't know about Oz, but here, their store-brand cables are stupidly overpriced compared to Trademe or Kmart, for example. 
I remember checking online 10 or 12 years ago for an adapter of some sort - I could get the adapter at Dick Smith's for $19.95 (DSE branding), or I could buy 5000 from the factory for NZ$5000 including shipping. This was exactly the same item, so obviously the markup was fairly steep even taking into account the GST, tariffs, packaging, Consumer Guarantees Act etc. 
Even now, they're trying on high prices for store branded cables except when there's a sale, even though Kmart and Trademe have basically the same thing for $5-$10 (including courier for TM).

jegga

Is Dick Smith like the mad butcher and only uses Smiths name now?

taniwharugby

and those are the bread and butter stuff that they make huge mark-ups on because people expect own branded stuff to be lower priced and Joe Average doesn't shop around for.

barbarian

<blockquote class="ipsBlockquote" data-author="rotated" data-cid="550696" data-time="1451956441">
<div>
This is a <a data-ipb='nomediaparse' href='http://webcache.googleusercontent.com/search?q=cache:6ejGUtuY55oJ:https://foragerfunds.com/bristlemouth/dick-smith-is-the-greatest-private-equity-heist-of-all-time/+&cd=1&hl=en&ct=clnk&gl=us'>pretty interesting read</a> from back in October detailing how things got where they did (post Woolies at least). Had to use Google Cache as the original site is down.
</div>
</blockquote>
 
That's an incredible read. Amazing that people got sucked in by this.

barbarian

<blockquote class="ipsBlockquote" data-author="jegga" data-cid="550713" data-time="1451961158">
<div>
Is Dick Smith like the mad butcher and only uses Smiths name now?
</div>
</blockquote>
 
Yeah Dick cashed out years ago.
 
Hits the nail on the head here re Anchorage Capital: <a data-ipb='nomediaparse' href='http://www.smh.com.au/business/retail/dick-smith-sees-survival-alongside-harvey-norman-jb-hifi-20160105-glzkdw.html '>http://www.smh.com.au/business/retail/dick-smith-sees-survival-alongside-harvey-norman-jb-hifi-20160105-glzkdw.html </a>

mariner4life

<blockquote class="ipsBlockquote" data-author="rotated" data-cid="550696" data-time="1451956441">
<div>
This is a <a data-ipb='nomediaparse' href='http://webcache.googleusercontent.com/search?q=cache:6ejGUtuY55oJ:https://foragerfunds.com/bristlemouth/dick-smith-is-the-greatest-private-equity-heist-of-all-time/+&cd=1&hl=en&ct=clnk&gl=us'>pretty interesting read</a> from back in October detailing how things got where they did (post Woolies at least). Had to use Google Cache as the original site is down.
</div>
</blockquote>
cheers for that. Clever stuff using the limited disclosure requirements. You would think it's the type of thing you only get away with once though.

Nepia

<blockquote class="ipsBlockquote" data-author="barbarian" data-cid="550739" data-time="1451966903">
<div>
Yeah Dick cashed out years ago.
 
Hits the nail on the head here re Anchorage Capital: <a data-ipb='nomediaparse' href='http://www.smh.com.au/business/retail/dick-smith-sees-survival-alongside-harvey-norman-jb-hifi-20160105-glzkdw.html '>http://www.smh.com.au/business/retail/dick-smith-sees-survival-alongside-harvey-norman-jb-hifi-20160105-glzkdw.html </a>
</div>
</blockquote>
The link's dead Baabaa.

JK

Links prob to the same article doing the round a few months back. 
It's a classic private equity "makeover" and far from the first of these.

barbarian

Hmmm no it's from today, on SMH. Works when I paste it into my address bar, but not when I click on the link in the post. Weird.
 
<a data-ipb='nomediaparse' href='http://www.smh.com.au/business/retail/dick-smith-sees-survival-alongside-harvey-norman-jb-hifi-20160105-glzkdw.html'>Maybe try this link.</a>

Nepia

<blockquote class="ipsBlockquote" data-author="barbarian" data-cid="550759" data-time="1451969571">
<div>
Hmmm no it's from today, on SMH. Works when I paste it into my address bar, but not when I click on the link in the post. Weird.
 
<a data-ipb='nomediaparse' href='http://www.smh.com.au/business/retail/dick-smith-sees-survival-alongside-harvey-norman-jb-hifi-20160105-glzkdw.html'>Maybe try this link.</a>
</div>
</blockquote>
That one works - same link address. Weird. Maybe one of the IT nerds on here can explain to us what's happening there?

No Quarter

Yeah - PICNIC.

taniwharugby

they are also the major sponsor of the 9's coming up next month...but apparently it wont be impacted
 
Which is a bit of a shitter since they are not going to honour any gift cards (gutting for anyone who got one for Christmas!) I realise the sponsorship woulda been done ages ago...

NTA

<blockquote class="ipsBlockquote" data-author="taniwharugby" data-cid="550807" data-time="1451978209">
<div>
they are also the major sponsor of the 9's coming up next month...but apparently it wont be impacted
</div>
</blockquote>
 
League is used to running on funny money.

Nepia

<blockquote class="ipsBlockquote" data-author="No Quarter" data-cid="550790" data-time="1451974366">
<div>
Yeah - PICNIC.
</div>
</blockquote>
That could be extremely funny but I have no idea what it means.

gollum

<blockquote class="ipsBlockquote" data-author="mariner4life" data-cid="550747" data-time="1451967974">
<div>
cheers for that. Clever stuff using the limited disclosure requirements. You would think it's the type of thing you only get away with once though.
</div>
</blockquote>
 
You get away with it so long as there are companies run incompetently by people who don't know how to wind them down properly & investors who are total morons & can't do basic due dilligence.
 
I have no issue with what Anchorage did, its the guy they bought it off & the flat out morons they sold it to that shareholders should be suing.
 
Also, its a really interesting read & the weird thing is nothing they did was particularly complex nor hard to see - and certainly not morally nor legally shadey. Some of it couldn't have been done by the previous owners - eg the fair value write downs, and others are only benificial if you have taxable profits to use. IE if you have 100m in carried forward losses, generating another 50m in losses has no tax benifit to you unless you can make 150m+ in tax due in the future. Hence less "you fucked up" on the sellers, but the "investors" who bought it should be fucking shot. 20 minutes with the balance sheets would have explained all that.

Godder

<blockquote class="ipsBlockquote" data-author="Nepia" data-cid="550827" data-time="1451985248">
That could be extremely funny but I have no idea what it means.</blockquote>
 
Problem In Chair Not In Computer i.e. a user error.

Godder

<a data-ipb='nomediaparse' href='http://i.stuff.co.nz/business/industries/75618531/Dick-Smith-customers-will-not-get-refund-on-gift-cards-and-deposits-receiver'>http://i.stuff.co.nz/business/industries/75618531/Dick-Smith-customers-will-not-get-refund-on-gift-cards-and-deposits-receiver</a> 
Looks like the proverbial may be hitting the fan here as well... Side note - don't buy vouchers, give cash in a pretty envelope or card.

Nepia

<blockquote class="ipsBlockquote" data-author="Godder" data-cid="550868" data-time="1452019001">
<div>
Problem In Chair Not In Computer i.e. a user error.
</div>
</blockquote>
Cheers - Not very nice of NQ to call Baabaa a problem. ;)

jegga

Was reading Gerry Harvey from Harvey Norman putting the boot in , apparently brand name lines like DSE are a bad idea and customers see through them. I wouldn't buy a TV etc from a shop that had it's own name on it, as Godder says if you order enough of a product from a Chinese factory they'll put any name you want on it. 
<a data-ipb='nomediaparse' href='http://i.stuff.co.nz/business/75647248/The-anatomy-of-Dick-Smiths-decline'>http://i.stuff.co.nz/business/75647248/The-anatomy-of-Dick-Smiths-decline</a>

No Quarter

<blockquote class="ipsBlockquote" data-author="Nepia" data-cid="550773" data-time="1451971220">
<div>
That one works - same link address. Weird. Maybe one of the IT nerds on here can explain to us what's happening there?
</div>
</blockquote>
 
Anyway just to explain, the original link didn't work because there is an extra space on the end of it.
 
So yeah, the problem did appear to be in barbarian's chair.
 
;)

Godder

You can probably make it work if they are cheap enough relative to the normal brands, particularly if you hammer the message that you stand behind the product, solid warranties, honour the Consumer Guarantees Act etc (the Warehouse strategy) but DSE weren't really doing any of that. 
Don't know about Oz, but the Warehouse buying Noel Leeming and Kmart repositioning as a cut-price retailer had to be a kick in the nuts for them here. Kmart don't do much in the way of consumer electronics any more, but what they do sell is really cheap, and now the Warehouse have access to quality brands which they sell at good prices (some solid sales especially), as well as revitalising Noel Leeming who were also struggling a bit.

jegga

I didn't know the warehouse bought k mart, they bought torpedo 7 and not much changed which was good. I see Smith city is killing off L V Martin as a brand, I'm surprised it took so long .

NTA

<blockquote class="ipsBlockquote" data-author="Godder" data-cid="550868" data-time="1452019001">Problem In Chair Not In Computer i.e. a user error.</blockquote>
Also known as PEBCAK: 
Problem Exists Between Chair And Keyboard

Godder

Warehouse didn't buy Kmart, sorry if that was how it read. Kmart totally revamped their stores and range, and went full on cheap stuff. They also largely got out of consumer electronics - now they only really sell cables, phone cases, cd player/radios, mini speakers etc. No-name brands, cheap prices. 
Smith's City also killed off the Powerstore brand - rebranded them all as Smith's City.

NTA

Kmart have moved downward in their pitch, partly due to market forces, but also because Wesfarmers have both Kmart and Target on the books.
 
They've effectively positioned them either side of Big W here in Australia, with Target providing a similar range, better quality, and keener pricing than Big W. Kmart goes for the cheap bucks in the meantime.

Godder

Apparently the banks called for receivership now to maximise cash on hand after Christmas and New Year sales, including gift cards and vouchers which would have been purchased but not yet redeemed. 
I also read that directors may find themselves personally liable for gift cards because they must have known they were in trouble, yet didn't stop selling them.

Virgil

<blockquote class="ipsBlockquote" data-author="Godder" data-cid="551052" data-time="1452107477">
<div>
Apparently the banks called for receivership now to maximise cash on hand after Christmas and New Year sales, including gift cards and vouchers which would have been purchased but not yet redeemed. 
I also read that directors may find themselves personally liable for gift cards because they must have known they were in trouble, yet didn't stop selling them.
</div>
</blockquote>
 
 
That shit has to be illegal, selling gift card, vouchers and only offering store credit for returns when knowingly the receivers are about to come in.
 
My younger brother works for Dick Smith, apparently was called into a meeting along with fellow staff yesterday. Have yet to hear the details of what was said.

taniwharugby

yeah they were saying on the news last night it was kind of an odd situation, they had to act like everything was normal and 'most' would have liked to think they could trade out of the shit, and to stop selling gift cards would have obviously alerted people to problems and then they'd of missed a lot of the Christmas cash as people would be worried about warranties etc.

Godder

<blockquote class="ipsBlockquote" data-author="Virgil" data-cid="551053" data-time="1452109053">
That shit has to be illegal, selling gift card, vouchers and only offering store credit for returns when knowingly the receivers are about to come in. 
My younger brother works for Dick Smith, apparently was called into a meeting along with fellow staff yesterday. Have yet to hear the details of what was said.</blockquote>
 
As I understand it, it's illegal for companies to knowingly take on liabilities that can't be repaid, which is basically what gift cards are (liabilities), so the directors could find themselves in hot water.

Donsteppa

The gift card scenario, whether legal or not, is a great way to destroy any residual goodwill from current and future customers - little chance of the receivers having a potentially viable business on their hands at this rate...

mariner4life

<blockquote class="ipsBlockquote" data-author="NTA" data-cid="551030" data-time="1452080949">
<div>
Kmart have moved downward in their pitch, partly due to market forces, but also because Wesfarmers have both Kmart and Target on the books.
 
They've effectively positioned them either side of Big W here in Australia, with Target providing a similar range, better quality, and keener pricing than Big W. Kmart goes for the cheap bucks in the meantime.
</div>
</blockquote>
Kmart are killing it in the decorating department. The missus and all her mates buy heaps of decorating shit from there, because apparently it's good, and cheap as fuck.

Rancid Schnitzel

Just read that Dick Smiths was sold for 20 million and listed for 560 million. Firstly, who was stupid enough to buy that stock and secondly, isn't that borderline fraud?

Godder

<blockquote class="ipsBlockquote" data-author="Rancid Schnitzel" data-cid="551223" data-time="1452140297">
<div>
Just read that Dick Smiths was sold for 20 million and listed for 560 million. Firstly, who was stupid enough to buy that stock and secondly, isn't that borderline fraud?
</div>
</blockquote>
 
It was originally sold to Woolworths for $20 million in 1982. The sale by Woolworths to Anchorage was for $112 million in Nov 2012. Not that it makes much difference to your general points!

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Dick Smith gooooooone?