Is Dick Smith set to become Super Cheap Tech?
Sources within Dick Smith claims that the Super Retail Group that own Super Cheap Auto group are currently running a ruler over the remnants of the Dick Smith retail chain that was placed into administration earlier this week.
ChannelNews has been told that the group is only interested in selected stores and that over 50% of the current Dick Smith stores could be closed down.
Under Super Cheap Tech, the stores could take on Jayco as well as range auto tech and consumer electronics excluding the likes of TV’s and PC’s.
Dick Smith’s bankers – NAB and HSBC – called in receivers Ferrier Hodgson who is set to formally launch a for sale process in an effort to shift the Dick Smith group as one entity.
ChannelNews has also been told that both a South African and New Zealand retail group have contacted the receivers regarding selected assets.
The company’s New Zealand operations, which remain profitable, are expected to be the most attractive of the assets along with the Move stores and the Dick Smith online operation.
The collapse came just days before another company, home furnishings chain Laura Ashley, called in FTI Consulting as ?administrators.
FTI Consulting said it intended for the business to trade as usual while “an urgent assessment of the company’s financial position is conducted”. Laura Ashley’s New Zealand operations will not be affected, nor will the brand’s British stores, which operate as a separate company.
Despite the failure of the two retailers, analysts anticipate strong results from the December trading period. Analysts at Citi said it appeared discretionary spending growth over Christmas would hit 6 per cent, with feedback and store visits showing strong results for Dick Smith competitor JB Hi-Fi and Super Retail Group’s Rebel business.
Ferrier Hodgson’s James Stewart on Tuesday said the New Zealand business was profitable and “expected it would be ?attractive to potential buyers”. The company operates 62 stores in New Zealand.
Another retailer that could be interested is Briscoe Group, which operates a number of brands including Briscoes Homeware, Living & Giving and Rebel Sport in New Zealand.
It has about 80 stores across the country and annual revenues of more than $450 million.
The company unsuccessfully tried to acquire another Australian chain, Kathmandu, last year, lobbing a $312m bid in July.