DICK SMITH IN RECEIVERSHIP; Dick Smith receivers say gift vouchers, deposits will not be honoured

kiwijims · Guru

DICK SMITH IN RECEIVERSHIP; Dick Smith receivers say gift vouchers, deposits will not be honoured

rockylizard · Guru

Gday...

confuse Dick Smith has NOTHING to do with the business known as Dick Smith Electronics.

Channel 9 and ABC have even run their stories with a photo of Dick Smith behind the newsreader.

It is interesting to note that Woolworths sold the 'enterprise' to Anchorage Capital Partners in 2012 for $115Million - Anchorage Capital Partners listed it on the ASX at $520million. It is now worth less than $60million - and carrying too much inventory, very little sales activity and too much debt.

I certainly feel for those who bought and/or received gift vouchers for Christmas and those who have put deposits on equipment that will not be initially honoured.

Cheers - John

Cruising Cruze · Guru

To be honest It's a long time ago since we bought something there
When they gave away the electronics bits and pieces they went backwards quick smart
They used to have people in the shop that knew what they were selling
So not strange that they fighting a losing battle
Sign of the times I think, sorry to say

John

Woody n Sue · Guru

Like you cruising cruise I have barely entered there shops since the stopped selling electronic bits n pieces also
And yes has nothing to do with Dick Smith at all hasn't done for years

Young Simmo · Guru

What a rotten stunt! If you paid cash money for a gift card (Which I didn't), and now all of a sudden it is valueless, I reckon we should all start posting on every possible forum and discussion site, "Do not purchase gift cards, they are not worth the plastic".

If 1000s of us do that on web sites all over the internet world, maybe just maybe, somebody might try and make it a fairer world. If it doesn't work, we haven't lost anything.

Simmo.

Bruce and Bev · Guru

Worked for a different large company that did the same as DS and the receivers also refused to refund deposits or gift cards - these poor folk are unsecured creditors and at the bottom of the feeding chain for any money that is left in DS coffers. There needs to be a change in the law to put these people at the top of the list with staff - in fact the Banks are at the top of the list of secured creditors - isn't that a surprise.

The only people that are (currently anyway) full time in their stores is the store manager and sometimes the 2 I/C. All the rest of the staff have been for months now been permanent part-timers with only a maximum 4 hours of guaranteed work offered each week. That's why the staff know so little about the products they sell. Many of the staff have left as previously they were casuals (Uni students mostly) and got higher rates per hour as holiday and super payments weren't deducted from their wages.

The staff and store managers are treated terribly and expected to work in their own time to attend training (often having to travel up to 80km to a central training place), provided no meals (courses usually run at night from 6-10pm) and "re'lay" the shop (putting up new prices, specials and new layouts) every week. Please spare a thought for the 3300 staff - especially those who are full time) who are now likely to join the dole queue

Bruce and Bev · Guru

and just to make it worse for the many staff, the receivers have just told them that they will be employed meantime until a decision is made to close or they can find a buyer for DS, BUT they will not accrue Super or holiday pay (they can make a claim for owed holiday pay along with any wages outstanding from the Federal Govt scheme - so the taxpayer will pay up). The only winners will be the Banks and the receivers.

Isnt it great that civil law allows customer, staff and taxpayer to be screwed over in these circumstances??? Staff and customers should be at the top of the secured creditors list - not the Banks. After all, they are in a risk taking business so if they loose, they should be in line behind the other two groups. Suppliers are at the bottom of the secured creditors list or are often not secured at all

The company I worked for did the same thing and re-opened their shops the next day - still trading under the same name - with no debts owing (which was previously about $47M), they had purchased at cheap prices stock and vehicles they wanted from the defunct company and started off with new staff not owing them any Super or holiday/long service leave. The Directors continued to run the business and the Govt paid out the staff for wages and leave - but not the Super that was almost a year in arrears. They also owed their previous customers about $4M in deposits and gift vouchers which were worthless

dogbox · Guru

Bruce and Bev wrote:
Worked for a different large company that did the same as DS and the receivers also refused to refund deposits or gift cards - these poor folk are unsecured creditors and at the bottom of the feeding chain for any money that is left in DS coffers. There needs to be a change in the law to put these people at the top of the list with staff - in fact the Banks are at the top of the list of secured creditors - isn't that a surprise.

The only people that are (currently anyway) full time in their stores is the store manager and sometimes the 2 I/C. All the rest of the staff have been for months now been permanent part-timers with only a maximum 4 hours of guaranteed work offered each week. That's why the staff know so little about the products they sell. Many of the staff have left as previously they were casuals (Uni students mostly) and got higher rates per hour as holiday and super payments weren't deducted from their wages.

The staff and store managers are treated terribly and expected to work in their own time to attend training (often having to travel up to 80km to a central training place), provided no meals (courses usually run at night from 6-10pm) and "re'lay" the shop (putting up new prices, specials and new layouts) every week. Please spare a thought for the 3300 staff - especially those who are full time) who are now likely to join the dole queue

we all(as a nation) voted against a government that proposed work choices but it still seems to exist

ds made, money wow made money, anchorage capital made money to me it smells of the old bottom of the harbour scheme revamped everboby makes money except the last man holding the bag

woolman · Guru

I wonder why Dick Smith's was offering gift vouchers at a substantial discount on Christmas eve. You can't tell me the people authorising this discount did not know that they would be going into liquidation within a few working days. Just another method of legalised theft from the small guy.

Neil

KFT · Guru

I seem to recall a business in this area that was closing down and made the statement they would not honour gift cards until Fair trading got involved and told them they had to honour the gift cards.

Santa · Guru

The people who purchased a gift voucher have lost a few dollars, unfortunate, the small investors who purchased shares in DSH have lost their total investment.

As I said in this thread http://thegreynomads.activeboard.com/t61427173/has-dicky-done-his-dash/ the clue was there back in August.

Young Simmo · Guru

Also let's keep things in perspective, Dick Smith the man, is about 3 or 4 back in the line of owners of this business, and even though it carries his name I have a lot of admiration for the man and his achievements.

Simmo.

Young Simmo · Guru

Any GNs that are being hurt by this shambles might like a look at this.

Simmo.

https://www.yourlifechoices.com.au/the_meeting_place/11865?utm_medium=email&utm_campaign=Volume%2016%20Issue%204%20Daily%20eNews%20Wednesday&utm_content=Volume%2016%20Issue%204%20Daily%20eNews%20Wednesday+Version+A+CID_ed7f48844f7989f4032666e4f8cd308e&utm_source=campaign%20monitor&utm_term=get%20your%20money%20refunded

Santa · Guru

Young Simmo wrote:
Any GNs that are being hurt by this shambles might like a look at this.
Simmo.

https://www.yourlifechoices.com.au/the_meeting_place/11865?utm_medium=email&utm_campaign=Volume%2016%20Issue%204%20Daily%20eNews%20Wednesday&utm_content=Volume%2016%20Issue%204%20Daily%20eNews%20Wednesday+Version+A+CID_ed7f48844f7989f4032666e4f8cd308e&utm_source=campaign%20monitor&utm_term=get%20your%20money%20refunded

Unsecured creditors, the bottom of the food chain, the money is gone.

brickies · Guru

The moment the Receiver take over a company they call all the shots , Fair trading has no say , If you buy a product and pay your money and don't take the item with you and before you come back to pick the item up, The receiver take over you can not pick the item up , The receiver is god and covered by the the law . The best trick is never buy store vouchers they are to risky .

Woody n Sue · Guru

Yes and when you forget you have them and find them much later the won't honnor them because they have an expiry date
Didn't know cash expired but it does when it's on a gift card
Personal experience some years back
Woody

Young Simmo · Guru

OK, here's another clue for the ripped off people.
Simmo...........Go for it.
https://au.news.yahoo.com/thewest/a/30500947/accc-making-enquires-into-dick-smith-collapse/

KFT · Guru

It would appear the company is not in the hands of Receivers-yet

It has entered "voluntary administration" according to the ACCC article.

more to come out yet I am thinking.

Frank

KFT · Guru

Update from NSW Fair Trading this afternoon

Quote
The board of directors of Dick Smith appointed Joseph Hayes, Jason Preston, William Harris and Matthew Caddy of McGrathNicol as voluntary administrators.

Following this appointment, a syndicate of lenders to Dick Smith and a number of associated entities, appointed James Stewart, Jim Sarantinos and Ryan Eagle of Ferrier Hodgson as receivers and managers.

The receivers and managers have taken control of Dick Smiths business and assets and intend to call for expressions of interest for a sale of the business as a going concern.

Ferrier Hodgson issued a media release on 5 January 2016.

To register as an unsecured creditor of Dick Smith, call the Creditor Hotline (established by the voluntary administrators with Link Market Services) on 1300 853 481, or send an email to dicksmith@linkmarketservices.com.au.

brickies · Guru

There is a list of who get what and Number 1 on the list is the Australian Tax Office