Dick Smith in store decline

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#1462085 6-Jan-2016 07:08

savag3: According to the Companies Office site the NZ company is not in receivership. So either the receiver hasn't filed the paperwork with the Companies Office site yet or the NZ company isn't really in receivership...
Looking at the accounts for the NZ company available there last financial year it was profitable (net profit $1.35 million) and had $10 million cash in the bank. They look not too bad. If things are still like this it is very likely they will be bought.

That cash will probably head across the Tasman to bail out the Aussie owners.

Jaxson

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#1462107 6-Jan-2016 08:25

Is there an option to use giftcards as payment or part payment online?

MikeB4

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#1462108 6-Jan-2016 08:34

savag3: According to the Companies Office site the NZ company is not in receivership. So either the receiver hasn't filed the paperwork with the Companies Office site yet or the NZ company isn't really in receivership...
Looking at the accounts for the NZ company available there last financial year it was profitable (net profit $1.35 million) and had $10 million cash in the bank. They look not too bad. If things are still like this it is very likely they will be bought.

I struggle to think of a possible buyer for NZ DSE. The Warehouse, no they already have sufficient with Noel Leeming. Smith City, very remote possibility but doubt they could fund it or turn it's fortunes. Harvey Norman, they would seem to have sufficient franchise locations in NZ, not sure they would be keen on regional locations. JB HiFi I, similar to Smith City.

A possibility is a equity company to buy it and on sell it as a franchise set up but it's survival in a very competitive small market would be very unlikely.

MikeB4

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#1462112 6-Jan-2016 08:36

Jaxson: Is there an option to use giftcards as payment or part payment online?

I would say no. Their only worth now are as ice scrappers

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#1462115 6-Jan-2016 08:52

MikeB4:
Jaxson: Is there an option to use giftcards as payment or part payment online?

I would say no. Their only worth now are as ice scrappers

... but hold onto them anyway just in case the receivers announce in time that gift cards can be used as part payment. This is what happened with Whitcoulls, as best I remember.

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#1462124 6-Jan-2016 09:06

MikeB4:
savag3: According to the Companies Office site the NZ company is not in receivership. So either the receiver hasn't filed the paperwork with the Companies Office site yet or the NZ company isn't really in receivership...
Looking at the accounts for the NZ company available there last financial year it was profitable (net profit $1.35 million) and had $10 million cash in the bank. They look not too bad. If things are still like this it is very likely they will be bought.

I struggle to think of a possible buyer for NZ DSE. The Warehouse, no they already have sufficient with Noel Leeming. Smith City, very remote possibility but doubt they could fund it or turn it's fortunes. Harvey Norman, they would seem to have sufficient franchise locations in NZ, not sure they would be keen on regional locations. JB HiFi I, similar to Smith City.

A possibility is a equity company to buy it and on sell it as a franchise set up but it's survival in a very competitive small market would be very unlikely.

Buying into a bunch of expensive long term leases, for a company that many suspect of hiding skeletons in a rather large closet...
Nope.
Again, no property portfolio makes them a less attractive option for TWG and Harvey's.
Smith's City have sold their flagship store to raise capital recently... but they now have to rent it back off their landlord, and their expansion will be elsewhere. They, like Harvey's, need large footprints to house their margin rich furniture and bedding departments. They've all but nuked their PowerStore chain too, so that's out.

Pascoe's / Farmers are an interesting proposition, but their newest Auckland store doesn't even stock TV's - only appliances. So I don't see them chomping at the bit to get involves in DSE.

I'm picking the doors are closed.

Jaxson

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#1462137 6-Jan-2016 09:21

Agree, Farmers seem to be scaling down their TV/audio division in my area. Where once there were whole stores devoted to the electrical side of things, the new large store in the mall has a tiny section of TV's etc. There's just other better/larger players in that arena such as JB Hifi down just the mall.

Smith City seem to branch out into all sorts past their bed and sofa core business. They have kayaks, lawnmowers and stereos etc, all quite random, but I do wonder how well, or how badly they are doing.
Briscoes is in there, but they've stayed away from electronics on the most part, although they do have a sale coming up soon, which promises to be their biggest ever...

The warehouse is in the game, with PS3s and 4s and Xboxs, although electronics wise they've stuck to their own home brands of Veon TV's mostly, and some other no name scary tablets etc. The Veon TV's were actually pretty good value for money, (good UI and even a stolid real glass stand etc), and I'd take one over the DSE JVC offerings easily.

Maybe a chance for a final DSE clearout of the non home brand stuff that wasn't particularly discounted last time around. Such as apple products?...

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Dunnersfella

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#1462163 6-Jan-2016 10:04

Jaxson:

Smith City seem to branch out into all sorts past their bed and sofa core business. They have kayaks, lawnmowers and stereos etc, all quite random, but I do wonder how well, or how badly they are doing.
Briscoes is in there, but they've stayed away from electronics on the most part, although they do have a sale coming up soon, which promises to be their biggest ever... The warehouse is in the game, with PS3s and 4s and Xboxs, although electronics wise they've stuck to their own home brands of Veon TV's mostly, and some other no name scary tablets etc. The Veon TV's were actually pretty good value for money, (good UI and even a stolid real glass stand etc), and I'd take one over the DSE JVC offerings easily.

Maybe a chance for a final DSE clearout of the non home brand stuff that wasn't particularly discounted last time around. Such as apple products?...

Smiths have sold off Alectra, closed the LV Martin branches and all but nuked the PowerStore outlets.
Combined with them selling their flagship store in Chch and cutting almost all HiFi offerings from their store - they're becoming a furniture and bedding + seasonal retailer in my eyes. Of course, they are still keeping their oar in many categories so they can easily re-expand at a later date.

The Warehouse may be in the game, but they're not going anywhere. They turned up with Sony and Samsung TV's a while ago... and still seem to have some of the same model Samsung TV's on the shelf!!!
The tablet / laptop offering is weak... their media business will be okay I'm guessing, but as people move to streaming the number of DVD's and Bu-rays sold would have to be on the decrease? They have expanded their vinyl offering greatly though!
To a degree, they were the biggest competitor to DSE - whether or not DSE wanted to admit it.

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#1462165 6-Jan-2016 10:08

(Shamelessly stolen from The New Zealand Herald.)

msukiwi

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#1462166 6-Jan-2016 10:09

FYI: According to Companies Office:
Alectra is still owned 100% by Smiths City.

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#1462170 6-Jan-2016 10:18

Nobody will want the Dick Smith brand. There is no value in it.

This is a shame, but the world isn't always a friendly place.

logo

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#1462172 6-Jan-2016 10:20

I know a company in liquidation is marked as such on the companies office website but does the same apply if it's in receivership or voluntary administration?

The Dick Smith NZ company looks fine. IN which case if only the Australian parent company has gone into receivership (leaving the NZ company untouched - for now), can they actually refuse to accpet/honour the gift cards/vouchers? (I know they're not legal tender)

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#1462173 6-Jan-2016 10:23

sbiddle: Nobody will want the Dick Smith brand. There is no value in it. ...

Sad but true.

The DSE brand has been poisoned by a dodgy takeover and bad marketing decisions, and DSE now has no point of difference in a crowded marketplace.

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richms

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#1462174 6-Jan-2016 10:27

logo:can they actually refuse to accpet/honour the gift cards/vouchers? (I know they're not legal tender)

They can refuse to accept them at any time for any reason. Have you not read the terms that cover them before?

Richard rich.ms

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#1462175 6-Jan-2016 10:32

Snippet from their investor website posted yesterday:

"The group will continue to trade as normal whilst the Receivers and Managers undertake an assessment of the business and offer it for sale."

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