After yesterday’s trading halt announcement, which followed a bizzare sale that had competitors like Harvey Norman reeling, it looks like the end of the road this morning:
From ABC:
Electronics retailer Dick Smith has gone into voluntary administration, with McGrathNicol appointed to run the firm following a failure to secure adequate funding to support the business.
The firm’s management said sales and cash generation were below expectations in the key December trading period, continuing a poor run in the later part of 2015.
Dick Smith said that, while confident in the long-term viability of the company, 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.
Thankfully the namesake is still kicking along, but this is likely to impact the likes of Harvey Norman (HVN) and JB Hi-fi (JBH) on the open very shortly.