It's official: After months of fruitless negotiations with would-be buyers, Dick Smith is shutting up shop in Australia and New Zealand. All 363 stores will shut down within the next eight weeks with some 2890 staff put out of work. It's a sad day for brick-and-mortar retail but a good one for Aussie bargain hunters. The fire sales are coming...
[Update: Dick Smith has confirmed it will be selling stock at heavily discounted prices. Get the Dick Smith Closing Down Sale details here!]
Today, Dick Smith's receivers announced that the beleaguered electronics chain would be closing after failing to find a buyer. With the exception of Move airport locations, all stores across Australia and New Zealand will be shutting their doors by mid-April.
"While we received a significant number of expressions of interest from local and overseas parties, unfortunately the sale process has not resulted in any acceptable offers for the group as a whole or for Australia or New Zealand as standalone businesses," explained Ferrier Hodgson Receiver James Stewart in a statement. "The offers were either significantly below liquidation values or highly conditional or both."
It is anticipated that the closure of the remaining 301 stores in Australia and 62 stores in New Zealand will take approximately 8 weeks. Approximately 2,460 staff will be impacted by the store closures in Australia and approximately 430 in New Zealand.
Employees across head office and stores were informed today, and will be provided with "appropriate outplacement support" by the Receivers.
So what does this mean for stock in stores? It's likely that another clearance sale will be held in the near future similar to the one in December. We've contacted Dick Smith for comment -- watch this space!