Dick Smith to close all Australian and NZ stores

Dick Smith store closures across Australia and New Zealand will affect 2980 staff members.
Dick Smith store closures across Australia and New Zealand will affect 2980 staff members. Inga Williams

THE remaining Dick Smith and Move stores in Australia and New Zealand will close within eight weeks, after receivers failed to find a buyer for the embattled company.

Receivers and Managers to Dick Smith Holdings and associated entities James Stewart, Jim Sarantinos and Ryan Eagle of Ferrier Hodgson made the announcement today.

All stores will close except those in airport locations.

Receiver James Stewart said the closures were necessary, with no realistic buyers in sight. 

"While we received a significant number of expressions of interest from local and overseas parties, unfortunately the sale process has not resulted in any acceptable offers for the group as a whole or for Australia or New Zealand as standalone businesses," Mr Stewart said.

"The offers were either significantly below liquidation values or highly conditional or both."

The closure of the remaining 301 stores in Australia and 62 stores in New Zealand is expected to take around eight weeks.

Approximately 2,460 staff will be impacted by the store closures in Australia and approximately 430 in New Zealand.

Mr Stewart said this is a very disappointing outcome for the employees of Dick Smith who have given loyal service to the business.

"We would particularly like to thank the Dick Smith employees for their support and patience during the receivership process", he said. 

All Australian employee entitlements will rank as priority unsecured claims ahead of the secured creditors and are expected to be paid in full.

Entitlements of New Zealand employees who are made redundant are preferential claims ranking ahead of the secured creditors, and are expected to be paid in full up to a maximum statutory limit of NZD$22,160 under New Zealand law.

Employees across head office and stores have been briefed today, and will be provided with appropriate outplacement support by the Receivers.

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