Dick Smith goes into receivership

[gec2002]

"Electronics retailer Dick Smith has gone into receivership, with Ferrier Hodgson appointed to run the firm following a failure to secure adequate funding to support the business."

http://www.abc.net.au/news/2016-01-05/dick-smith-enters-voluntary-administration/7067798

Unfortunately a lot of customers may lose money, with gift cards not being honoured etc.

[collect247]

They won't lose money but it might be awhile before they receive it back.

[gec2002]

No unfortunately those with gift cards may lose money as Gift cards are regarded as Unsecured Loans to the company and rank amoung the lowest of unsecured creditors, so may get a percentage of their dollar back, but unlikely all.

[amber-eyed-girl]

[k1ooo-slr-sales]

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@gec2002 wrote:

No unfortunately those with gift cards may lose money as Gift cards are regarded as Unsecured Loans to the company and rank amoung the lowest of unsecured creditors, so may get a percentage of their dollar back, but unlikely all.

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I wonder if you could try a Credit Card Bank chargeback if you funded your Gift Card purchase with a credit card?  Would there be any inbuilt credit card insurance to cover such a situation?

[audistarelectronics]

Another fine example of stores trying to sell rubbish quality items. The DSE branded tv's etc were absolute garbage, and mostly unrepairable due to no service backup andf parts virtually non existant. Don't worry, there will be more to fall before too long, Sharp is finished in Aust, and there are a couple of big names on shaky ground also. Maybe customers are tired of being told ''sorry sir /madam, it's over 2 years old, no parts, time to dump it''. Woolworths saw it coming and offloaded it after they destroyed what was once a viable business that offered at least some alternative to Jaycar, who for some time has had the electronics bits and pieces side of things to itself, with it's grossly inflated prices compared to our little Ebay. It;s very easy to save big money if you don't need it yesterday.

[annies_fancy_dress]

THis was bound to happen.

THe $2 mentality affecting the population was always going to have repercussions.

We can't expect prices to stay low or go lower without the quality dropping.

Lower quality means means unhappy customers as well as **bleep**py products.

Cheap prices mean stores can't make a profit.

But, if expensive (read appropriate) prices mean a store doesn't sell anything, then (bleep).

Market forces at work.

[toysandthings12]

Wondering about how that will effect their ebay sales??

Stock unavailable or never to get restocked yet sold??

rather curiours about this.

And in a stouch with paypal payments to DSE going under will

Paypal lose out n not refund buyers??

Could come u to a large amount of money being

coughed up by Paypal.

Not sorry for DSE though, should never have moved into

a elcheapo product model. Sadly customers may have

pushed them into this.

And yes, many business's were in trouble in the

lead up to Xmas this year, Some fell over just

a week or 2 b4 Xmas. So no surprise with DSE.

Another larger mob are also in trouble but have a

larger parent to bail them out for the time being.

DSE going under may just solve it for many and

push them back into the black.

In our former shop location this turn of events would

have fixed our situation, cant go up against a mob

selling deliberately below cost after stock write downs

to show artificial profits to pull the wool over investor

eyes to then sell onto the stock market....

Sadly our super probably went into it...

[lyndal1838]

The Administrators are going to keep trading in the hopes that they will be able to sell the business as a going concern.

This will mean keeping the stores stocked which should mean eventually the ebay sales will be honoured as well.

A lot will depend on how the ebay part of the business is structured...and the general public will never be told this.

[nuthinbutposters13]

It absolutely astounds me that the Administrators can come out and say they won't honour gift cards or deposits paid on goods. How does the Govt allow them to get away with this ?

the company is continuing to trade, so therefore have stock in the stores, so if someone has a gift card, they should be able to go and spend it. 

Basically, the hundreds of thousands of dollars DSE has received from deposits and gift cards in the past couple of months, has gone toward helping keep stock on the floor, so they sell it to someone else. 

Personally, if I had a gift card, I would walk into DSE, pick up something of that value, and walk out. At the end of the day, the gift card has been paid for, if it's ok for the Administrators to steal that money, it's ok for the customer to steal something of that value.