SMH - Business Day
The corporate watchdog is closing in on failed retailer Dick Smith as it digs into the stocks write-down, profit downgrades and desperate discounting of the company's final months to build a picture of the demise of the once iconic chain.
Electronics companies and bargain hunters interested in buying Dick Smith will receive formal sale documents on Wednesday, as receiver Ferrier Hodgson goes about drumming up interest in the business. Sources told Street Talk that Ferrier Hodgson would release an information memorandum to serious tyre-kickers Wednesday, and seek formal expressions of interest by January 27. Read more: http://www.afr.com/street-talk/and-on-the-third-day-dick-smith-bids-were-due-20160116-gm7hc0#ixzz3xYFGohbV Follow us: @FinancialReview on Twitter | financialreview on Facebook
AUSTRALIAN entrepreneur Dick Smith says he will consider funding a class action against Anchorage Capital Partners, the private equity firm which floated his former company on the stock market in 2012. Mr Smith said Anchorage, which made hundreds of millions in the purchase from Woolworths and subsequent stock market listing, lacked “morality and decency”, The Australian reports. He has also demanded refunds for customers holding now-worthless gift cards.
Sunshine Coats Daily
RECEIVERS and managers for Dick Smith Holdings, which was placed into voluntary administration last week, have revealed creditors are owed approximately $390 million. Secured creditors are owed approximately $140m and unsecured creditors owed approximately $250m, receivers James Stewart, Jim Sarantinos and Ryan Eagle, of Ferrier Hodgson, said in a statement today. The news comes with the announcement that Dick Smith CEO Nick Abboud tendered his resignation last night, effective immediately.
Dick Smith’s public crisis came to an abrupt end late yesterday when the company’s lead bankers, NAB and HSBC appointed James Stewart from Ferrier Hodgson as receiver. The company, overwhelmed by debt and unable to pay suppliers to secure stock, then called in McGrathNicol to act as its voluntary administrator. In a statement to the Australian Securities Exchange late yesterday, January 4, Dick Smith Holdings chairman Rob Murray bluntly laid out the circumstances which bought down the iconic retail brand.
Dick Smith’s two-year life as a listed public company came to an abrupt end last night when the banks appointed a receiver to the company and the troubled retailer appointed a voluntary administrator. The company’s lead bankers, NAB and HSBC, appointed James Stewart from Ferrier Hodgson as receiver and McGrathNicol will act as the company’s administrator. Dick Smith is expected to confirm the appointments this morning. The company will now be formally wound up in a process aimed at maximising returns for the banks.