Dick Smith in store decline

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Networkn
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#1462326 6-Jan-2016 13:53

Patience guys! If you want good deals you need to let the receiver assess the situation. Right now they will be on a price freeze so they don't hemorrhage more money. If they decide they need $x they will decide what stock is on hand and see what needs to be done to achieve that target. Maybe then stock will be liquidated.

It will be widely made known through normal channels if that is the case.

tdgeek

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#1462331 6-Jan-2016 14:03

logo:
dafman: Gift card holders. It's really unfortunate, I know, but you are wasting your time researching companies office, getting in contact with credit card companies, trying to find loopholes etc.

They're dead Jim.

I don't have any gift vouchers but am interested to see how the impact of what's happening to the parent company in Australia impacts their NZ subsidiary here.

What does that mean to our big four Aussie-owned banks if one of those folds? (I suspect the Reserve Bank will have this covered off)

There must be examples of a parent company in one country folding but a subsidiary in another continuing to trade (not that the NZ side of DSE was doing that well anyway)

The NZ subsidiary is in the same position as the Aust on. Its up to the recievers to sort out their secured creditor crowd, i,e the two banks, then it will be the liquidator or adminsitrator for the rest. The aim it to maximise the return, or minimise the loss. The NZ business is operating at a profit, so in the short term its relatively safe, as its not incurring daily loses, its minimising the losses each day. And it is a going concern thats adding funds. If it was losing money, it would be shut now. But its not. Its best value is to be sold as a going concern, and while everyone here will be like a barge pole, the masses won't be. Its just a shop, short memories. Some niche company may buy it, or some lads, and get it cheap, and make a go of it, by fixing the range and making it pay.

MikeB4

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#1462396 6-Jan-2016 15:09

trig42: How big is the Riccarton DSE?
Would it be big enough to fit a JB HiFi? (JB Stores have a much bigger footprint than the average DSE, but a DSE Powerstore like they have at Sylvia Park, and Manukau would be big enough).
Wonder if JB are interested. Probably not given the small size of most of the stores.

DSE Riccarton Mall is big and well placed in the centre of the Mall

networkn

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#1462397 6-Jan-2016 15:10

MikeB4:
trig42: How big is the Riccarton DSE?
Would it be big enough to fit a JB HiFi? (JB Stores have a much bigger footprint than the average DSE, but a DSE Powerstore like they have at Sylvia Park, and Manukau would be big enough).
Wonder if JB are interested. Probably not given the small size of most of the stores.

DSE Riccarton Mall is big and well placed in the centre of the Mall

Considering JB are only just surviving themselves, I expect it unlikely they would have the funds or would raise enough capital to buy it.

Edit: please disregard as it seems they were doing better than I thought from reading an article a year ago.

bmt

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#1462459 6-Jan-2016 15:58

Couple of new articles out today. They were apparently "aggressively" promoting gift card sales at supermarkets in Aussie and offering a 10% bonus over the Christmas period:

http://www.smh.com.au/business/dick-smith-accused-of-pumping-up-gift-voucher-sales-20160105-gm0432.html?&utm_source=facebook&utm_medium=cpc&utm_campaign=social&eid=socialn%3Afac-14omn0012-optim-nnn%3Apaid-25062014-social_traffic-all-postprom-nnn-smh-o&campaign_code=nocode&promote_channel=social_facebook

And the banks waited until the company was cash rich from Christmas sales and before gift cards could be spent to put the company in receivership:

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11569929

Poor form all round really.

bmt

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#1462461 6-Jan-2016 15:59

networkn:
MikeB4:
trig42: How big is the Riccarton DSE?
Would it be big enough to fit a JB HiFi? (JB Stores have a much bigger footprint than the average DSE, but a DSE Powerstore like they have at Sylvia Park, and Manukau would be big enough).
Wonder if JB are interested. Probably not given the small size of most of the stores.

DSE Riccarton Mall is big and well placed in the centre of the Mall

Considering JB are only just surviving themselves, I expect it unlikely they would have the funds or would raise enough capital to buy it.

Link?

networkn

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#1462477 6-Jan-2016 16:29

bmt:
networkn:
MikeB4:
trig42: How big is the Riccarton DSE?
Would it be big enough to fit a JB HiFi? (JB Stores have a much bigger footprint than the average DSE, but a DSE Powerstore like they have at Sylvia Park, and Manukau would be big enough).
Wonder if JB are interested. Probably not given the small size of most of the stores.

DSE Riccarton Mall is big and well placed in the centre of the Mall

Considering JB are only just surviving themselves, I expect it unlikely they would have the funds or would raise enough capital to buy it.

Link?

Seems I was misinformed, please disregard my comments.

Reality is, why would they want DSE?

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richms

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#1462491 6-Jan-2016 16:52

Picked up some more AA and AAA cells, since I gave the last lots I bought to the cousins kids at xmas since other relatives always give gifts and nothing to power them. Sure enough, happened with 3 other toys this year. How inconsiderate of people.

Anyway, I thought i would see what the 12v remote batteries were. $14 or something for a pack of 2, were heaps cheaper when they did their sale before xmas. So not buying those since its not a bargain. Bought a couple of $5 USB micro cables since they were listed as being good for 2.4 amps. We shall see.

Richard rich.ms

sen8or

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#1462492 6-Jan-2016 16:54

They may like some of the locations that DSE operates from and see it as an advantage to get a foot in locations that they were previously excluded from. If there are competing stores in malls etc, then that makes it less attractive as they would still be stuck with competing stores with lease commitments, but its certainly a potential opportunity worth investigating.

dafman

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#1462519 6-Jan-2016 17:50

bmt: Couple of new articles out today. They were apparently "aggressively" promoting gift card sales at supermarkets in Aussie and offering a 10% bonus over the Christmas period:

http://www.smh.com.au/business/dick-smith-accused-of-pumping-up-gift-voucher-sales-20160105-gm0432.html?&utm_source=facebook&utm_medium=cpc&utm_campaign=social&eid=socialn%3Afac-14omn0012-optim-nnn%3Apaid-25062014-social_traffic-all-postprom-nnn-smh-o&campaign_code=nocode&promote_channel=social_facebook

And the banks waited until the company was cash rich from Christmas sales and before gift cards could be spent to put the company in receivership:

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11569929

Poor form all round really.

Not poor form, rather quite rational behaviour from the banks. If someone owed you money they couldn't repay, of course you would pick the best possible time to place them into receivership to minimise your losses.

mattwnz

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#1462527 6-Jan-2016 18:03

I am guessing they didn't want to do it before christmas, as that would have been bad news for staff at that time of the year, and an uncertainty over the christmas break. I was told by staff instore that some products were going cheaply, that they were getting rid of stock for a new range of products in the new year.

richms

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#1462528 6-Jan-2016 18:06

mattwnz: I am guessing they didn't want to do it before christmas, as that would have been bad news for staff at that time of the year, and an uncertainty over the christmas break. I was told by staff instore that some products were going cheaply, that they were getting rid of stock for a new range of products in the new year.

Thats the line they were spinning.

More likely reason is that they wanted to offload it as legitimate end user sales before any romalpa clauses could happen and it went back to the suppliers and they were liable for a huge loss in value of the items.

Richard rich.ms

st02197

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#1462552 6-Jan-2016 18:34

bmt: Couple of new articles out today. They were apparently "aggressively" promoting gift card sales at supermarkets in Aussie and offering a 10% bonus over the Christmas period:

http://www.smh.com.au/business/dick-smith-accused-of-pumping-up-gift-voucher-sales-20160105-gm0432.html?&utm_source=facebook&utm_medium=cpc&utm_campaign=social&eid=socialn%3Afac-14omn0012-optim-nnn%3Apaid-25062014-social_traffic-all-postprom-nnn-smh-o&campaign_code=nocode&promote_channel=social_facebook

And the banks waited until the company was cash rich from Christmas sales and before gift cards could be spent to put the company in receivership:

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11569929

Poor form all round really.

Surely someone should go to jail for this? Promoting the sales of something that they had no intention of honouring? At the very least the senior management should have known about this and should be held accountable.

richms

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#1462553 6-Jan-2016 18:35

st02197:
Surely someone should go to jail for this? Promoting the sales of something that they had no intention of honouring? At the very least the senior management should have known about this and should be held accountable.

Problem is proving anything like that has happened intentionally.

I expect this will be something to watch with interest and may hopefully spur a shakeup of the scam gift card industry.

Richard rich.ms

michaelmurfy

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#1462555 6-Jan-2016 18:40

The footer of DSE's website show they're now under administration:

Michael Murphy | https://murfy.nz
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