Dick Smith in store decline

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#1464903 7-Jan-2016 09:41

tdgeek:
MikeB4: My personal view is the receivers will struggle to sell the Group, they may be able to sell parts such as DSE New Zealand but I doubt that will happen.

I also feel there will be more of these collapses in this sector due to unsustainable pricing expectations by customers and competition pressure from off shore sellers.

Hard to say. On one hand we have the big boys, NH, Noels, etc. Then there is the Jaycar at the other end. DSE needs to reinvent itself, be a bit of a smaller big boy, and a Jaycar to a degree to offer some differentiation. I think they can and should keep the DSE name, its not attracting the same reaction as we are on here. It will be a bargaion for someone who can show a bit of vision. But like other industries, they can be a race to the bottom.

If you think of DSE being Australasia's version of Tandy/RadioShack, then I think we can clearly see where it is heading.

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driller2000

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#1464908 7-Jan-2016 09:46

Had this link shared by a mate of FB - makes for an interesting read:

https://foragerfunds.com/bristlemouth/dick-smith-is-the-greatest-private-equity-heist-of-all-time/

Geektastic

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#1464936 7-Jan-2016 10:11

MikeB4: My personal view is the receivers will struggle to sell the Group, they may be able to sell parts such as DSE New Zealand but I doubt that will happen.

I also feel there will be more of these collapses in this sector due to unsustainable pricing expectations by customers and competition pressure from off shore sellers.

They'll just sell the property and other physical assets to repay the bank and won't care two hoots what else happens as long as they get paid too.

tdgeek

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#1464947 7-Jan-2016 10:22

Geektastic:
MikeB4: My personal view is the receivers will struggle to sell the Group, they may be able to sell parts such as DSE New Zealand but I doubt that will happen.

I also feel there will be more of these collapses in this sector due to unsustainable pricing expectations by customers and competition pressure from off shore sellers.

They'll just sell the property and other physical assets to repay the bank and won't care two hoots what else happens as long as they get paid too.

Comments here show they lease most of the premises, and the assets such as plantt, etc would be very low value, and stock, probably also. Some stock wont count if its under Romalpa clause

Given the comments that non one would buy it, I guess they have no choice but to liquidate it.

dafman

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#1464950 7-Jan-2016 10:23

MikeB4:
I also feel there will be more of these collapses in this sector due to unsustainable pricing expectations by customers and competition pressure from off shore sellers.

Good point.

1. One of the upsides of free enterprise is competitive pressure to drive down prices. There are plenty of threads on Geekzone demonstrating contributors expectations to get the latest kit at the absolute lowest possible price.

2. One of the downsides of free enterprise is that, on occasions, some companies can't survive this competitive pressure, go under, and, yes, some unlucky punters lose out as a result.

Sorry folks, but you can't have 1 without 2.

MikeB4

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#1464964 7-Jan-2016 10:35

tdgeek:
Geektastic:
MikeB4: My personal view is the receivers will struggle to sell the Group, they may be able to sell parts such as DSE New Zealand but I doubt that will happen.

I also feel there will be more of these collapses in this sector due to unsustainable pricing expectations by customers and competition pressure from off shore sellers.

They'll just sell the property and other physical assets to repay the bank and won't care two hoots what else happens as long as they get paid too.

Comments here show they lease most of the premises, and the assets such as plantt, etc would be very low value, and stock, probably also. Some stock wont count if its under Romalpa clause

Given the comments that non one would buy it, I guess they have no choice but to liquidate it.

The massive sell off of stock over the last month will have ensured there are very lean pickings for the receivers. The question is what happened to the funds from the product sell off, if it has"melted away" then
the receivers may have legal recourse if it can be shown the company was insolvent and Directors did not act to rectify or acted in an inappropriate manner regarding funds.

tdgeek

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#1464985 7-Jan-2016 10:48

MikeB4:
tdgeek:
Geektastic:
MikeB4: My personal view is the receivers will struggle to sell the Group, they may be able to sell parts such as DSE New Zealand but I doubt that will happen.

I also feel there will be more of these collapses in this sector due to unsustainable pricing expectations by customers and competition pressure from off shore sellers.

They'll just sell the property and other physical assets to repay the bank and won't care two hoots what else happens as long as they get paid too.

Comments here show they lease most of the premises, and the assets such as plantt, etc would be very low value, and stock, probably also. Some stock wont count if its under Romalpa clause

Given the comments that non one would buy it, I guess they have no choice but to liquidate it.

The massive sell off of stock over the last month will have ensured there are very lean pickings for the receivers. The question is what happened to the funds from the product sell off, if it has"melted away" then
the receivers may have legal recourse if it can be shown the company was insolvent and Directors did not act to rectify or acted in an inappropriate manner regarding funds.

Most certainly. They can be held personallly liable. There are mumblings as in OZ, DSE gave 10% discounts on the gift cards, pre Xmas. Gives the word misleading a whole new meaning

Dunnersfella

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#1465003 7-Jan-2016 11:11

So the articles that quoted Gerry Harvey as saying a fire sale would be suicide... appears to pretty close to the mark.
Sure, they may not die completely, but it's not looking great from here.

MadEngineer

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#1465028 7-Jan-2016 11:29

Detruire:
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.

JB bigger than DSE? Really? The JB store in Palmerston North feels half the size of the DSE store.

yet JB seem to pack in much more stock and is 100x busier :p

ps, remember when palmy had two dse stores?

You're not on Atlantis anymore, Duncan Idaho.

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#1465030 7-Jan-2016 11:35

MadEngineer:
Detruire:
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.

JB bigger than DSE? Really? The JB store in Palmerston North feels half the size of the DSE store.
yet JB seem to pack in much more stock and is 100x busier :p

ps, remember when palmy had two dse stores?

JB HiFi stores are a nightmare to shop in. Not well organised, too small, too crowded, cluttered floor and aisles, constant loud annoying music. The Wellington store smells horrible.

Dunnersfella

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#1465041 7-Jan-2016 11:48

MikeB4:
MadEngineer:
Detruire:
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.

JB bigger than DSE? Really? The JB store in Palmerston North feels half the size of the DSE store.
yet JB seem to pack in much more stock and is 100x busier :p

ps, remember when palmy had two dse stores?

JB HiFi stores are a nightmare to shop in. Not well organised, too small, too crowded, cluttered floor and aisles, constant loud annoying music. The Wellington store smells horrible.

But loud activity attracts people like a moth to a flame...
And people attract people.
The old school 'stack 'me high watch 'me fly' mentality gives the impression that you're well stocked and that it was a bulk buy, so it's going to sell cheap... Even though the stores entire stockhold may be the 3 products in boxes plus the 1 unit that's sitting on top of them, on display.

Rickles

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#1465072 7-Jan-2016 12:20

My two pennies worth .... yes companies/retailers do often go bust for a variety of reasons, and there are currently legalities covering receivership etc.

However, I feel that the poor people who are holding gift certificates and the like are really being shafted .... as has been pointed out in various media they/someone paid real money for them, and essentially they are owed goods from the store regardless.

Not honouring the credits is tantamount to stealing, and made worse simply because they sold something, never provided it, and are now seeking to sell the business and its stock to someone else ... double-dipping?

In my own case, I made an online purchase (to be picked up in-store) before Xmas, and contrary to their statements on their web site -

1. No email confirmation received
2. No subsequent call from store to come pick it up
3. No response to Customer Service email relating above matter
4. No response to second email
5. Call to 0800 number elicited a "matter has been escalated, please be patient" response.

Fortunately I am in the gun for only $5.00

sir1963

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#1465075 7-Jan-2016 12:23

MadEngineer:
Detruire:
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.

JB bigger than DSE? Really? The JB store in Palmerston North feels half the size of the DSE store.
yet JB seem to pack in much more stock and is 100x busier :p

ps, remember when palmy had two dse stores?

And, so I am told, the Palmy store was the most profitable one in NZ.

mattwnz

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#1465078 7-Jan-2016 12:30

MikeB4:
MadEngineer:
Detruire:
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.

JB bigger than DSE? Really? The JB store in Palmerston North feels half the size of the DSE store.
yet JB seem to pack in much more stock and is 100x busier :p

ps, remember when palmy had two dse stores?

JB HiFi stores are a nightmare to shop in. Not well organised, too small, too crowded, cluttered floor and aisles, constant loud annoying music. The Wellington store smells horrible.

I went into the Wellington store again a few days ago with my parents, it was the first time in a couple of years. I can confirm their Wellington store still stinks. Infact it was so offensive that we didn't want to spend too long in it. My parents thought it was really bad BO. It would win the award of being the smelliest store in Wellington. The store is a bit of a dive compared to their new Lower Hutt store, and is limited in what they sell, they don't even sell home appliances.

Detruire

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#1465085 7-Jan-2016 12:41

MadEngineer:
Detruire:
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.

JB bigger than DSE? Really? The JB store in Palmerston North feels half the size of the DSE store.
yet JB seem to pack in much more stock and is 100x busier :p

ps, remember when palmy had two dse stores?

DSE seemed to have a greater number of categories of stock, but less choice within each of those categories (the whole lack-of-focus thing.)

I do. Pretty sure the smaller one still stocked (a rather limited range) of components very close to it's closure.

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