All of Dick Smith’s stores will cease trading over the next eight weeks excluding the Move Airport stores, the electronic retailer’s external managers announced this afternoon.
Employees were told today via email and teleconference.
Dick Smith collapsed into voluntary administration in January following poor Christmas sales.
Receivers Ferrier Hodgson this afternoon announced a controlled store closure program over the next few weeks after a buyer was unable to be found for the electronics chain.
Dick Smith has 301 stores remaining in Australia.
“It is expected this process will take approximately eight weeks,” Ferrier Hodgson said in a statement.
Approximately 2460 staff will be affected by the closures.
Receiver James Stewart said in a statement the sales process did not result in “any acceptable offers for the group as a whole or for Australia or New Zealand as standalone businesses”.
“The offers were either significantly below liquidation values or highly conditional or both,” Stewart said.
Stewart said the store closures are a disappointing outcome for Dick Smith employees.
“We would particularly like to thank the Dick Smith employees for their support and patience during the receivership process,” he said.
All entitlements for Australian employees will be considered priority preferential claims, according to Ferrier Hodgson, and rank above secured creditors.
Employees are expected to be paid in full.
One Dick Smith employee told SmartCompany this afternoon they were unsurprised by the announcement.
“My own circumstances mean it’s not going to affect me too badly, but I know people with mortgages and car loans who have been majorly screwed over,” the employee says.
“I’m mostly annoyed at the pre-administration management.”
Broede Carmody is a former senior SmartCompany reporter. Before this, he was a co-editor of RMIT University’s student magazine Catalyst.
