DICK SMITH, DAVID JONES PART WAYS
Written on the 22 January 2016 by Nick Nichols
DICK Smith's (ASX:DSH) association with David Jones (ASX:DJS) has come to an end after receivers to the stricken electronics group announced that 27 Electronics Powered by Dick Smith stores would close.
The move could cost 181 jobs and officially ends a two-year relationship that in 2013 was seen as a solution to David Jones struggling electronics retailing division.
Under the agreement Dick Smith established a presence within 27 David Jones stores where it operated a niche electronics business in return for David Jones receiving a share of the sales.
Receivers to Dick Smith Holdings say the closure of the venture has come on the heels of a review of the group's operations ahead of a planned sale of the business as a going concern.
The 27 Electronics Powered by Dick Smith stores will close on January 27.
"The exit of the 27 concession stores means that the employment of 181 employees will be affected," say the receivers in a statement to the ASX.
"This includes two full-time employees, 78 part-time employees and 101 casual employees.
"The exit from the concessions is a necessary step in the restructuring process to assist in ensuring the commercial viability of the Dick Smith Group businesses."
James Stewart, Jim Sarantinos and Ryan Eagle, of Ferrier Hodgson, were appointed receivers to the company after voluntary administrators Joseph Hayes, Jason Preston, Jamie Harris and Matt Caddy, of McGrathNicol, were appointed by the board on January 4.
The receivers have launched an advertising campaign for the sale of the Dick Smith business, revealing that they had already received more than 40 expressions of interest from various parties ahead of the campaign.
The receivers this week also revealed they were seeking an extension for the second meeting of creditors until August 2.
Author: Nick Nichols