Want to know how to turn $10m in to $520m in less than two years? Just ask Anchorage Capital. The private equity group has pulled off one of the great heists of all time, using all the tricks in the book, to turn Dick Smith from a $10m piece of mutton into a $520m lamb.
Having spent the morning poking through the accounts, we’re going to show you how it all happened.
Firstly, Anchorage set up a holding company called Dick Smith Sub-holdings that they used to acquire the Dick Smith business from Woolworths. They say they paid $115m, but the notes to the 2014 accounts show that only $20m in cash was initially paid by the holding company.
I don't understand why people would have invested in Dick Smith when it was floated. I mean all the dodginess going on may have made things look good on paper but anyone walking into an actual Dick Smith store would walk out again after a couple of minutes to wander over to the nearest JB.
The place has been rubbish for years.
Currently playing: Age of Empires 2: Definitive Edition (PC), Far Cry 4 (PC), FIFA 23 (Series X)
Shame what happened to Dick Smith. I used to like the feel of their old stores before they went mainstream. Ended up being more like electronics version of Overflow
Well they opened a new store at Epping plaza a few months back. It was winter and I had a $100 gift voucher. As I said it was winter. I was wearing a beanie and fingerless gloves because it was so cold. Earlier that day I'd bought a memory stick at the post office. So when I walked into the new DS store, I beeped on entry and nobody took notice. But this arogant fucktard followed me around the store practically demanding I tell him what I was looking for. When I told him I was looking around he followed me and stood less than a metre from me. Icracked it in the end and told him he had a problem. When I walked out the security beeped. I ignored it and kept walking. Fucktard chased me even though I was walking and accused me of stealing. Yold him it beeped when I came into the store and fucktard says "no it didn't". I returned to the store and they demanded I empty my pockets. Then they literally went through my wallet. I was flabbergasted. Then the memory stick turns up, with the receipt from Auspos and they conceded I hadn't stolen anything.
I'm not surprised they treated you like that only wearing a beanie and fingerless gloves. I don't even want to know where you were storing that mem stick.
selfish wrote:Being a massive fanboy and trying to hide it is Lestat's worst bottleneck.
No one put a gun to anyone's head and forced them to invest in Dick Smith though which I think is the key point to this for anyone losing money on the sharemarket collapse of DSE.
Cletus, u should have just gone full homeless crazy man on them it would have fit with the outfit. Fuck I hate that being followed around a shop when you know someone is doing it and for some reason they've summed you up as a certified shoplifter. I have to say one of major issues with going to JB is that they do this as well as treat you like a criminal whenever you try and leave even with a purchase, I have had them take shopping out of my bags and go through the receipt and check each item and it is stupid when I have bought games which they don't even have in their case on the shelves anyway lol
I had one of the HN staff scrunch up my money as I payed to test whether or not the notes were real or fake. It was quite embarrassing actually, won't go back there with my hard earned money.
You guys must be really dodgy looking eh? Either that or you act suspicious down the aisles. I've never had staff request to look in any bags, shopping or otherwise. Then again the Kiwi accent throws them. Weren't your ancestors dodgy?
selfish wrote:Being a massive fanboy and trying to hide it is Lestat's worst bottleneck.
They have two months to close all stores, lots of job gone. Expect Wii U-like fire sales.
Dick Smith stores across Australia and New Zealand are expected to close over the next eight weeks after its receivers were unable to find a suitable buyer for the company.
The remaining 301 stores in Australia and 62 in New Zealand will close, resulting in the loss of 2,460 staff in Australia, and 430 in New Zealand.
In a statement to the Australian Securities Exchange, receivers Ferrier Hodgson said it was a disappointing outcome.
"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," receiver James Stewart said.
"The offers were either significantly below liquidation values or highly conditional or both."
The receivers said all Australian employee entitlements would rank as priority and are expected to be paid in full.
Last month the electronics retailer went into receivership after sales and cash generation were below expectations in the key December trading period.
Dick Smith said at the time the directors were unable to secure support from the company's bankers to provide finance for restocking to see it through the next month to six weeks.
That prompted them to appoint McGrathNicol as administrators to run the firm while restructuring or sale options were explored.
However, after the appointment of administrators, Dick Smith's lenders appointed receivers, Ferrier Hodgson, to run the firm and protect their financial interests.
Earlier this month the Fair Work Ombudsman launched an investigation after evidence emerged the failed chain might have underpaid its employees.
Ferrier Hodgson discovered the discrepancies, worth as much as $2 million.
We're going to buy a house full of appliances for the joint we're renovating/rebuilding - TV, sound, kitchen - the lot. Thinking whether the bargains I might find here are worth chasing given the discounts we can push for when buying the lot in one transaction.
Peppermint Lounge wrote:We're going to buy a house full of appliances for the joint we're renovating/rebuilding - TV, sound, kitchen - the lot. Thinking whether the bargains I might find here are worth chasing given the discounts we can push for when buying the lot in one transaction.
I doubt it, nothing outstanding, you'll need to cross check everything as it might be just down to what u can get it to normally from somewhere else. Went today, was shit.
Just be careful if you buy any dse branded stuff. If it fails you won't be able to get it repaired or replaced and you won't have anyone to ask for a refund on.
Went into two shops today - would classify it as controlled chaos. People everywhere - the keyboard I had my eye was still there but the max discount they were giving was 40% off and KB was marked at $199, bugger that. The DSE brand TVs were bargain basement prices but I wouldn't touch them, after being burned by Soniq, will never buy a budget brand TV again. Kind of sad to see the Dick Smith brand die, I remember when it was more like Jaycar back in the day and it was event to go there when I was in primary school. Even after the move into consumer electronics there was the odd good deal to be had. It was only when they made the fully fledged transition into what I'd call 'bogan-electronics', you know, the cheap shit headphones, bluetooth speakers and phone chargers that they were always going to die.
fire sale 
