Dick Smith customers left high and dry as Aussie icon faces axe

After months of consistently weak sales and the value of the company dropping significantly, could this mean the end of

After months of consistently weak sales and the value of the company dropping significantly, could this mean the end of the road for Australia’s most iconic electronics retailer Dick Smith?

There are reports todays that after a final attempt to save the failing company with what is being dubbed a ‘suicidal’ sale, Dick Smith has appointed an Administrator.

Customers have been left fuming with the news that the electronics stores have been instructed to no longer honour any outstanding gift cards or return lay-by deposits. This has left many with useless Christmas gift cards and or out of pocket.

Not only is the situation gloomy for customers but also for shareholders who have had their shares frozen and may only receive just a few cents back for the shares, reports the Daily Mail.

Dick Smith sold his chain of stores to Woolworths in 1982 who later sold it to a private equity firm. Industry experts have questioned the methods of how the firm managed to quadruple the company’s value in just 12 months.

Even Mr Smith himself cautioned investors about the risk.

“You don’t need to be bright to realise that a company worth 90 million one moment is unlikely to be worth 500 million 12 months later…. It was pretty obvious to me that anyone buying those shares would be taking a risk,” he told Fairfax media.

Other experts say Dick Smith’s could be the latest victim of online trading with giant international retailers crowding out the competition. There is hope the company may be sold on and saved at the eleventh hour, however for now, the future of Dick Smith is up in the air.

Will you be sad to see the end of this Aussie icon should it come to pass? Are you affected by the failure to honour gift cards?

    • He may have sold out I have no idea but the stores are still there with the Dick Smith name on them

    • Libbi Elliot
      “Too Young to Know”……………. 🙁 🙁
      – understand

      • Terry Woon  

        Back in the 70’s, “Tricky Dicky” was an electronic enthusiasts business that sold any item for the DIY group. After selling to Woolies in’82 they changed direction and made it a retail outlet. Seems now only Jaycar remains. The trading name aslo was part of the sale, with the “real” Dick Smith” having no input into the running of the business.

    • wake up yourself Wayne Womerlsley I have put my pic on this website and I am way over 60..go stick your head in a bucket..and I just looked it up Margaret and you are right Anchorage own it now

    • Sounds like another online arsehole troll, we all know where his head his.

      • Rob Gee  

        Ladies, and by the language I am paying you a compliment, there are bigger issues here than poor little Libbis ego.

        This is another Australian employer on the verge of falling off the cliff. That’s important, we need to own as much of our country as possible before the Chinese and others buy it from under us.

        As an aside, while they downsize and sell off Dick Smith (to China?), I reckon the receivers wont go short changed, they never do. Bugger the ordinary guys who have gift cards and lay-by money “invested” in the company.

  1. I have been to Dick Smith to either buy or price items, I like to shop around, and the prices are higher than many of it’s competitors and the service is very slow. I am not all surprised this is happening

  2. We’ve had nothing but good experiences at our local Dick Smith store, so I am sorry this is happening.

  3. I have to agree with Leanna they over price their items, I bought a tv the same brand $150 cheaper from the Good Guys than what Dick Smith was selling it

  4. Stopped caring about it when Mr Dick Smith sold it. Just another retail store now.

  5. When DSE was truly Dick Smith Electronics it was a great store with all sorts of bits and pieces for sale. Since its recent sale it has become just another retail electronic goods store.

  6. Wayne Watkins  

    I smell a rat here . Think JB Hi Fi is much more on the ball and is making squillons . Pity about the old Dick Smith name , although Dick Smith Foods has nothing to do with the electronics company .

  7. Then they shouldn’t have sold gift cards ,they should be made to honour them

    • It will be up to the administrator. Gift card holders or people who have things on layby will simply be just another creditor.

    • I would have thought they should be made to honour gift cards ,they would make you pay outstanding debts to them

  8. My local Dick Smith use to be an amazing store, however recently I was there and I couldn’t find anyone to help me so I went to find help and what I found was some very rude staff which I was not use to in this particular store. After that experience I had decided not to go back there, that said you can’t blame Dick Smith for the way the staff treat people. I think some young people think they only have to turn up to receive their pay each week, it really is a shame to see this happen after the hard work he put into the company.

  9. No I won’t be sorry I have stopped going into the Phoenix D.S
    They never havecustomer service and never have advertised lines .

  10. These stores have nothing to do with Dick Smith…he could care less whats happening with them…why are you Starts at 60″ ??

    • Not only he could not care less, but if you read the story you will see that he even warned the general public about the “dangerous waters” the new order set sail for.

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