Dick Smith vouchers void as company goes into receivership
ANYONE who received a Dick Smith voucher for Christmas is out of luck after the company announced it would no longer accept outstanding gift vouchers after being put into receivership today.
Dick Smith Holdings Ltd, one of the country’s largest electrical retailers, was placed into receivership following the appointment of voluntary administrators.
A spokesperson for Receivers Ferrier Hodgson said it would be businesses at usual at both the Lismore and Ballina Dick Smith stores as they look at potential cost-saving measures for the group.
Receiver James Stewart said it was too early to clearly identify the primary cause of the company’s current financial position and the reasons for its decline other than recent cash constraints.
Mr Stewart said employees across the 393 Dick Smith stores would continue to be paid by the receivers.
However, outstanding gift vouchers cannot be honoured and deposits cannot be refunded.
Affected customers will become unsecured creditors of the group.
In a statement, Dick Smith said sales and cash generated in December were below management expectations.
Dick Smith Chairman Rob Murray said the company explored alternative funding, however the Directors formed the view that any success would not have been soon enough to support short-term funding requirements.
“The Board believes the appointment of a Voluntary Administrator at this time is the best way to protect the interests of shareholders, creditors, employees, suppliers and other stakeholders,” he said.
There are 3,300 employees across Australian and New Zealand stores with annual sales of about $1.3 billion.