Dick Smith is the Greatest Private Equity Heist of All Time - Page 1
Forum section: electronics / general

author: EEVblog
author_rank: Unknown
timestamp: October 29, 2015, 07:27:26 am
content: Wow! I wish I was this smart!https://foragerfunds.com/bristlemouth/dick-smith-is-the-greatest-private-equity-heist-of-all-time/

author: Muttley Snickers
author_rank: Unknown
timestamp: October 29, 2015, 08:15:31 am
content: That was a damn good read Dave, an excellent insight into what goes on behind the scenes, thanks for sharing.It reminded me of a dodgy brothers episode.

author: krivx
author_rank: Frequent Contributor
timestamp: October 29, 2015, 08:49:02 am
content: Quote from: Muttley Snickers on October 29, 2015, 08:15:31 amHa, I had no idea Dodgy Brothers was a real sketch. I thought it was just something Dave says

author: Monittosan
author_rank: Regular Contributor
timestamp: October 29, 2015, 09:04:55 am
content: They closed a kit department that was still turning a profit

author: EEVblog
author_rank: Unknown
timestamp: October 29, 2015, 09:12:09 am
content: Quote from: Muttley Snickers on October 29, 2015, 08:15:31 amIndeed it does.I had no idea it was so relatively simple to pull off something like that, just need to have the initial cash and a retail company on the ropes with lots of stock.I'm surprised no one sniffed this out before the float (or no one cared)Although some were weary it seems:http://www.smh.com.au/business/dick-smith-float-a-commercial-riddle-that-doesnt-compute-20131125-2y638.htmlhttp://www.fool.com.au/2013/12/05/is-dick-smith-a-buy-after-yesterdays-float/

author: Kjelt
author_rank: Super Contributor
timestamp: October 29, 2015, 10:42:21 am
content: Quote from: EEVblog on October 29, 2015, 07:27:26 amBut Dave, first of all you don't have $10M of your own money, and if you had would you risk it all in a business you don't have a clue about?Me if I had $10M of own money would quit my job tomorrow and start hobbying, but then that is what you are already doing.So actually if you had $100M you would still be doing the same thing tomorrow, so sleep well you already made it

author: Marco
author_rank: Super Contributor
timestamp: October 29, 2015, 11:30:23 am
content: The problem with private equity only really comes in when they use the stock market's ridiculously poor grasp of debt mechanics relative to management and load a viable company down with debt and throw it on the stock market and run.PS. so basically each and every time, if only rich investors fell for it instead of my pension fund I wouldn't mind ... alas the stock market is collectively filled with idiots, some of which I have no choice but to let play with my money.

author: GK
author_rank: Super Contributor
timestamp: October 29, 2015, 12:37:04 pm
content: Quote from: wilfred on October 29, 2015, 11:22:41 am"Following a profit downgrade yesterday, the shares are now valued by the market at $0.77, and investors in the float are sitting on a 65% loss of capital from the $2.20 float price."Dicksmith remains the Masters in the consumer electronics retailing sector and that isn't going to change any time soon. It's much easier to differentiate between Dicksmith and its direct competitors than it is to differentiate between Masters and Bunnings though. Dicksmith's whole business model is flawed and dated. As a consumer electronics products retailer their product lines are too niche and sales of stuff (on which their bottom line is heavily dependent) like tablets and mobile phones fluctuate with trends in fashion as much as anything else - not anywhere near as much an issue for the likes of Harvey Norman (just for example) that sells everything from PCs, phones, tablets, audio visual equipment, etc through to washing machines, fridges, cook tops and ovens.

author: Maxlor
author_rank: Frequent Contributor
timestamp: October 29, 2015, 12:38:19 pm
content: Quote from: wilfred on October 29, 2015, 12:02:21 pmYou could also actuallycreatevalue, instead of trying to screw people over to make a quick buck.

author: EEVblog
author_rank: Unknown
timestamp: October 29, 2015, 01:35:56 pm
content: Quote from: Maxlor on October 29, 2015, 12:38:19 pmYou could do that, but there is generally less risk and greater reward in screwing people over, that's why the big wigs do it that way.

author: Marco
author_rank: Super Contributor
timestamp: October 29, 2015, 01:39:58 pm
content: Quote from: wilfred on October 29, 2015, 12:02:21 pmBecause not taking advantage of people's naivety is the moral thing to do.

author: Marco
author_rank: Super Contributor
timestamp: October 29, 2015, 11:47:24 pm
content: Quote from: wilfred on October 29, 2015, 10:37:01 pmGiving your word that you will only make decisions in favor of your clients, within the law, regardless of morality does not absolve you of immorality of decisions. It just means you were immoral in making the promise AND in making the decision.

author: Marco
author_rank: Super Contributor
timestamp: October 30, 2015, 12:53:49 am
content: Quote from: wilfred on October 30, 2015, 12:09:48 amSure we can, sociopaths would just self select themselves to run the financial system since they have no morals to impede decision making to begin with ... oh wait ...

author: vk3yedotcom
author_rank: Frequent Contributor
timestamp: January 04, 2016, 11:50:20 am
content: Receiver / administrator appointed.Company to be wound up.http://www.theaustralian.com.au/business/receivers-called-in-to-dick-smith/news-story/795a2e0e890a4627797fe260a5666cfa(if link doesn't work, google Dick Smith bankers call in receivers or try below )http://hotcopper.com.au/threads/receivers-called-in-to-dick-smith.2673607/#.VopfrPl96Ukhttps://www.fool.com.au/2016/01/04/dick-smith-holdings-ltd-investors-could-be-in-deep-trouble/http://canmua.net/world/dick-smith-shares-in-trading-halt-pending-debt-and-256894.html

author: EEVblog
author_rank: Unknown
timestamp: January 04, 2016, 01:38:06 pm
content: Quote from: vk3yedotcom on January 04, 2016, 11:50:20 amExactly what those who pulled off the heist knew would happen.

author: station240
author_rank: Unknown
timestamp: January 04, 2016, 08:58:15 pm
content: Company might have had a chance if woolies had sold it to someone with technical ability. But alas it was transfer from one idiot owner (a supermarket) to an even worse company only run by accountants and share traders. The DSE nearest me had two stores, within walking distance, even the store owners couldn't explain why.Just about anyone on this forum could spend a day in their store and sort the junk from the stuff that's worth buying. Now if the people running the company did the same, it would be far more profitable.They could have kept one store in each state that has electronics parts, remember the powerhouse stores ?Don't buy shares in a business you don't understand, also applies to corporations buying each other. But no one listens, as they are idiots.

author: hamster_nz
author_rank: Super Contributor
timestamp: January 04, 2016, 10:27:29 pm
content: It is a bit mean that they still have their "One day online Only Sale" on their web sites, and it is still taking orders.I bet anybody who orders will not see their product. They should pull the pin straight away!

author: sleemanj
author_rank: Super Contributor
timestamp: January 04, 2016, 11:00:38 pm
content: Looks like Dick's is circling the plughole now...http://www.stuff.co.nz/business/industries/75618531/dick-smith-goes-into-voluntary-administrationwon't be long.

author: VK3DRB
author_rank: Super Contributor
timestamp: January 04, 2016, 11:14:30 pm
content: Quote from: hamster_nz on January 04, 2016, 10:27:29 pmNEVER trust private equity. I quite a job because of them - they borrowed $253 million to buy the company and the employees effectively had to pay it back. Private equity is there for one reason and one reason only - to make money. It is an unhealthy paradigm.Dick Smith is now in receivership. Dick Smith lost the plot as soon as they stopped selling soldering irons and started selling irons for housewives. The name Dick Smith is now associated with failure, unless the receivers can try to revive something out of the ruins. Maybe Dick Smith himself should get back in there and turn it into an electronics company again. If anyone can, he can. But I suspect Dick was simply an opportunist when he sold out in 1982 and so he lost the dream 33 years ago. Dick Smith Electronics was once a respectable company, but in the last 15 years it have been a joke.I wonder what will become of the Techxsperts. I feel sorry for them actually. No-one likes to be in a company going down hill fast. Maybe they should go back to uni and get a certificate of technology in electronics or an electronic engineering degree. At least with an EE degree, they will be prepared for the ubiquitous inherent instability in the electronics industry and unstable employment.

author: TerraHertz
author_rank: Super Contributor
timestamp: January 04, 2016, 11:58:40 pm
content: Thank god there's still Jaycar, who haven't lost the plot.Dick Smith stores have been nothing but a painful reminder of what happens when corporate money vampires get control of a business that once had vision. VK3DRB, I went through the same experience, of working at a place that got taken over by idiot ghouls, who cared for nothing but share price pump & dump. It was horrific. I couldn't quit due to high salary, very close to home, and being in the process of rapidly paying off a mortgage. Took me a couple of excruciating years to get made redundant, and I swore to never work for corporates ever again. (The mortgage was paid off OK.)It was a relief when the Bankstown DS store closed a few years ago, as going there always left me with a depressed 'world's going to shit' feeling. Like seeing an old friend turned zombie.There's another Dick Smith store not far away from me. I've never been there, but think I'll go have a last browse. For closure.

author: Tandy
author_rank: Frequent Contributor
timestamp: January 04, 2016, 11:59:31 pm
content: Shame to see another one go under but selling the same Chinese do-dahs as everyone else is just not sustainable.

author: hamster_nz
author_rank: Super Contributor
timestamp: January 05, 2016, 12:20:08 am
content: Quote from: TerraHertz on January 04, 2016, 11:58:40 pmDepends on which plot you are talking about! What to by a gadget or a battery then sure....I had a gift voucher to spend, and got (among other things) an XC4478 - a three Axis accelerometer to play around with.The box (and Jaycar catalog) said:"This module can measure +/-3g magnetic field full scale acceleration minimum""I2C interface""13-16 bit resolution."The ADXL335 (and the module) has three analog outputs. It has been like that way in for at least a long while... It seems to me that they too no longer understand what they are selling (at least in the hobby electronics range).

author: dannyf
author_rank: Super Contributor
timestamp: January 05, 2016, 12:32:21 am
content: QuoteWritten by someone who doesn't understanding accounting and clearly has no appreciation of capitalism.For a free market to operate efficiently, it is pareto optimal for assets to be correctly priced (=price discovery). So there must be people who is willing to invest in price discovery, and be rewarded for price discovery. The Dick Smith case is nothing but someone discovering an under-valued asset and exploited it and got rewarded handsomely for it.As those inefficiencies are exploited and stupid investors are punished and driven out of the marketplace, the market will become more efficient. And that is good for everyone.

author: hamster_nz
author_rank: Super Contributor
timestamp: January 05, 2016, 12:50:08 am
content: From a workmate at work:My daughter just went to use her voucher and they stopped accepting them at midday today.So she's now the proud owner of an expensive (but useless) piece of plastic.

author: VK3DRB
author_rank: Super Contributor
timestamp: January 05, 2016, 12:58:55 am
content: Quote from: TerraHertz on January 04, 2016, 11:58:40 pmDitto. I once worked for IBM who sold us off to venture capitalists backed by Mitt Romney's Bain Capital private equity. The new company was called Bluegum Technology. "You either join the new company or be deemed to have resigned from IBM in which case there will be no redundancy (payment)" said then then CEO of IBM Australia. So we joined Bluegum because there was no other electronics work in the town. For my 19 years with IBM, they IBM confiscated $40K of my Superannuation retirement funds. Bluegum closed up shop about 2 years later. I vowed never to work for a big corporate multinational again.I work for a medical company now in electronics design and coding. But I am working on leaving and going it alone becoming self employed. I have three devices I want to develop, one is an ATE machine I want to commercialise. I built it 6 years ago and it has been used by an electronics manufacturer since then. In between, I can do contracting.

author: EEVblog
author_rank: Unknown
timestamp: January 05, 2016, 01:04:10 am
content: Quote from: VK3DRB on January 05, 2016, 12:58:55 amThat sounded ripe for a group action with a good commercial law lawyer.I've heard other companies have tried the same thing and failed when challenged.Although IBM are most famous for their lawyers.

author: coppice
author_rank: Super Contributor
timestamp: January 05, 2016, 03:41:22 am
content: Quote from: Tandy on January 04, 2016, 11:59:31 pmTry telling that to Walmart.

author: sony mavica
author_rank: Frequent Contributor
timestamp: January 05, 2016, 04:29:58 am
content: i wondered why when i went to dicksmith a little while ago all there games and lot of other stuff was dirt cheap

author: Hypernova
author_rank: Unknown
timestamp: January 05, 2016, 04:45:06 am
content: My first soldering iron was from dick smith.My first roll of solder was from dick smith.My first multimeter won at school (which I promptly blew up on a microwave transformer) was a prize from dick smith.This is not how his legacy should end...

author: VK3DRB
author_rank: Super Contributor
timestamp: January 05, 2016, 05:22:42 am
content: The man speaks sense...http://www.theage.com.au/business/retail/fmcg/dick-smith-founder-sees-survival-alongside-harvey-norman-jb-hifi-20160105-glzj4j.html

author: VK3DRB
author_rank: Super Contributor
timestamp: January 05, 2016, 05:50:56 am
content: Quote from: EEVblog on January 05, 2016, 01:04:10 amThey apparently ran a mock court case in NSW (IBM Australia is incorporated there) to test if the employees could launch a class action against them. The superannuation was called Part IV. The rule was if you decide to leave IBM for any reason you don't get the Part IV. But IBM effectively put a gun to our heads and forced us out. So we left IBM and in doing so lost our Part IV. Oddly enough one employee got the Part IV by mistake but it was kept hushed up. Maybe there is a case based upon that precedent. I don't know; I am no lawyer.

author: HackedFridgeMagnet
author_rank: Super Contributor
timestamp: January 05, 2016, 07:39:11 am
content: Quote from: dannyf on January 05, 2016, 12:32:21 amNo there is more to it than that. Apart from the obvious pump and dump. Also I am not sure why you don't think they understand capitalism, they seem to know more about it than most of the other financial organisations.Yes the people who chose to invest in the float were stupid, but the big losers were the people who didn't choose to invest in Dick Smith but had their superannuation funds invest in DS for them.Because the float was big enough to land in the ASX200 index, much of the investment came from Super Managers who have index following funds.These unknowing investors are the main target of these style of heists.Goodman Fielder was another, Macquarie Infrastructure another.I say get rid of compulsory Super to help bring back the local sharemarket to something like capitalism.

author: mrpackethead
author_rank: Super Contributor
timestamp: January 05, 2016, 09:10:14 am
content: Quote from: TerraHertz on January 04, 2016, 11:58:40 pmThey just hire staff with personal hygine issues.

author: Tandy
author_rank: Frequent Contributor
timestamp: January 05, 2016, 11:09:11 am
content: Quote from: coppice on January 05, 2016, 03:41:22 amThat is the point, when you have large supermarket chains with buying power and low cost logistics on one side and internet retailers with low overheads on the other you can't compete. If you are selling for example an HDMI cable that you can either buy very cheap on-line or conveniently pick one up when buying your groceries, why would you make a trip to a specialist store? What will draw you there? After all you know what you want, so you won't go there for specialist knowledge.At the end of the day there are a limited number of ways you can compete...You can lower prices, but you will never win that game with physical stores.You can offer convenience, that can work if you sell travel adaptors at an airport for example but not if people have to make a special trip to your store, unless you have a wide range of useful things that can all be bought in the same place. This takes a great deal of effort to get the right product mix and maintain a reputation for having the things people need.You can offer something unique. If you sell items that are not easily found elsewhere then people will make the effort to come to you. That doesn't mean necessarily stocking obscure items but instead of selling the same item with a different name on it as everyone else you need to make the effort to source better/more interesting products. This requires that you have a good understanding of what you are selling, as you can't just rely on stocking the same thing as other retailers to be safe. You need people who are skilled in spotting products with unique features that can be used as selling points.

author: dannyf
author_rank: Super Contributor
timestamp: January 05, 2016, 11:28:53 am
content: Agree. The fundamental problem guys like dick Smith and RadioShack face is that the market is changing in ways more than their existing business models can accommodate.The market is shrinking, the technology is advancing to a point the traditional diy may not be possible, and competition is going global, ...The customers they depend on are simply disappearing.

author: rsjsouza
author_rank: Super Contributor
timestamp: January 05, 2016, 12:39:57 pm
content: Quote from: Tandy on January 05, 2016, 11:09:11 am+1. Diversification is what sustains Walmart's business: basically they sell a lot more than a simple cable, turning a slightly more expensive cable into a convenience purchase given you will get it next time you do groceries. I know from my experience this also happens with other products across the store - one example is personal hygiene products: the local pharmacy sells them at a lower price, but you don't drive there exclusively for this. If diversification wasn't worth, Amazon wouldn't be trying to get into groceries market.Quote from: Tandy on January 05, 2016, 11:09:11 amNot only a great deal of effort but also a great deal of cushion to get inventory and keep it in your store until you go above the red line. Fry's Electronics and MicroCenter have been diversifying continuously trying to capture some of the convenience aspect of it. Fry's, for example, is known as an electronics store that also sells white goods (not easily purchased online) and toys (especially during holiday season). MicroCenter entered the maker wave despite also being known as a computer store.Quote from: Tandy on January 05, 2016, 11:09:11 amOne another attempt was to offer an improved "consumer experience" - something that BestBuy tries to offer with their Magnolia design centers and geeksquad technical support. However, we all know the issues with a design center (people see it at the store but buy online) and geeksquad (dissatisfied customers are very vocal, even if a minority).

author: VK3DRB
author_rank: Super Contributor
timestamp: January 07, 2016, 12:57:02 am
content: If the receivers have been called in, why is Dick Smith still trading on-line? Isn't that illegal? I am not sure. In any case I would not go near their on-line sales with a barge pole - too risky in my opinion.Dick Smith, "That's where you go!" -> "That's where you go... broke!"Dick Smith, "Talk to the techxperts!" -> "Talk to the receivers!"https://www.dicksmith.com.au/

author: Len
author_rank: Frequent Contributor
timestamp: January 07, 2016, 01:17:40 am
content: Quote from: VK3DRB on January 07, 2016, 12:57:02 amThe receiver's job is to sell off the company's remaining assets, to repay the creditors (as much as possible). So they'll stay in business as long as they have stuff to sell.

author: mrpackethead
author_rank: Super Contributor
timestamp: January 07, 2016, 02:19:33 am
content: its in administration not receivership which is different.

author: Brumby
author_rank: Unknown
timestamp: January 07, 2016, 02:37:42 am
content: Quote from: mrpackethead on January 07, 2016, 02:19:33 amYes, very different.https://legalvision.com.au/difference-receivership-administration-bankruptcy-liquidation-impact-creditors/

author: Len
author_rank: Frequent Contributor
timestamp: January 07, 2016, 08:00:15 pm
content: Quote from: mrpackethead on January 07, 2016, 02:19:33 amItisin receivership. From an article posted earlier in this thread:Quotehttp://hotcopper.com.au/threads/receivers-called-in-to-dick-smith.2673607/#.Vo7DZVK1-P9

author: Tandy
author_rank: Frequent Contributor
timestamp: January 07, 2016, 08:37:25 pm
content: Correct, the administrators were voluntarily appointed by the directors, so they are responsible for the day-to-day operating of the company, the directors are essentially suspended. The bank has appointed a receiver to recover as much of the debt as possible for the banks benefit. It is the receiver that will take control of all assets and be responsible for selling the business as a whole or closing it and selling off individual assets.To the bank their sole responsibility is to recover as much of the loan as possible. Sometimes this means that a buyer for the business can be found who has the financial stability to take on the loans and the business is sold for $1 on the basis that the bank expects to have the loans repaid. Other times it could be that the business is sold as a going concern for less than the loan value and the bank retains a share holding in the hope of gaining the difference back.However more often than not it means that nobody is willing to take on the debts so individual assets are sold off. Usually the largest asset is the main brand that someone will buy without any obligation to existing customers in order to continue trading using the name. After that you are just left with stock, any company owned buildings and fixtures and fittings. Typically a over hyped closing down sale ensues where people who don't know any better get caught up in the frenzy and buy stuff for prices not that much lower than they could get on-line.I addition to debts they have with banks and suppliers there will also be leases for their stores that they can not get out of unless they liquidate making it even less attractive to any potential buyer who would almost certainly want to close all under performing stores to get things back on track.

author: station240
author_rank: Unknown
timestamp: January 08, 2016, 07:14:03 am
content: One story I found said the banks are owed $40M, so the stock alone should be worth more than the loans. I have no faith in the banks to simply take what money they are owed, and pass the rest onto the customers with the now worthless gift cards. The banks here are crooks, and think nothing of selling a $300k house for $20K , and then demand fees for only selling the house for the amount owed.Having a fire sale of DSE's stock, and selling a few stores would do the company good. Restock the stores with decent products.

author: Tandy
author_rank: Frequent Contributor
timestamp: January 08, 2016, 10:27:30 am
content: According to news reports Dick Smith owes more than A$140 million to its banks as well as more than A$200 million to creditors.

author: nctnico
author_rank: Super Contributor
timestamp: January 08, 2016, 12:05:30 pm
content: Quote from: wilfred on January 08, 2016, 11:17:06 amThey already did on a massive scale. Between 2000 and 2008 banks where way too easy with lending people money. They didn't check (or even care) whether people could actually pay the money back or not. How did you think the 'credit crunch' happened?

author: dannyf
author_rank: Super Contributor
timestamp: January 08, 2016, 12:17:03 pm
content: This thread could benefit with some Econ 101.As to 2008, the banks are least of the problems.

author: station240
author_rank: Unknown
timestamp: January 08, 2016, 01:30:46 pm
content: Quote from: wilfred on January 08, 2016, 11:17:06 amDoor swings both ways, banks are obliged to ensure money loaned is able to be repaid. The problems with DSE didn't appear overnight, it was in trouble more than 2 years ago when woolworth's sold it. Who would lend hundreds of millions to a company in such a poor condition ?The key point is repay the debt, the rest of the money belongs to someone else.In this case many people are owed money, the idea should be to repay as much of the debt as possible.For instance, you could pay off more debt by giving those with giftcards the $100 worth of stuff from the store (retail prices), rather than selling it at auction for $10.Banks are insured against losses anyway, much unlike the staff and customers of DSE who will likely get screwed.To answer your question, the banks should just kiss this year's profit goodbye (actually 10% of it). Better that than yet another fall in consumer confidence, and large losses in the active part of the economy the people who actually spend their money (workers, customers, people who got cheated out of christmas).

author: dannyf
author_rank: Super Contributor
timestamp: January 08, 2016, 04:12:59 pm
content: QuoteAt time of the loan was underwritten.Shit happens in life and no one has a crystal ball that can predict the future perfectly, banks or no banks. Inferring bank's intention to make a bad loan from the fact that a bank made a bad loan is a stretch in common sense.

author: nctnico
author_rank: Super Contributor
timestamp: January 08, 2016, 10:45:19 pm
content: Quote from: dannyf on January 08, 2016, 04:12:59 pmLook for the Dutch DSB bank. Handing out bad loans was their pyramid scheme! If people couldn't pay they would just borrow more money to them and sell them expensive but worthless insurance policies. When this bank went belly up they needed 500 million euro to repair the bad loans and compensate people for the worthless insurance policies.The same went on on a bigger scale where bad loans where wrapped into packages where the risk suddenly dissapeared. In the end this caused the Lehman brothers to go belly up. So did banks make bad loans they knew about at the moment the loan was approved? YES! As long as people get their bonusses they don't care about the long term effects which is why strict rules are necessary in order to prevent another collapse of the financial system.

author: EEVblog
author_rank: Unknown
timestamp: January 09, 2016, 09:24:21 am
content: Quote from: Tandy on January 08, 2016, 10:27:30 amWho gets first suck of the sav?

author: VK3DRB
author_rank: Super Contributor
timestamp: January 09, 2016, 10:11:59 am
content: Quote from: EEVblog on January 09, 2016, 09:24:21 amIf they go under and everything is sold off, the receivers get paid first, then the tax man, then employees and finally everyone else. Don't ever think receivers are kind hearted altruists. They are in it for the money. Their hourly rate makes plumbers look like volunteers working in an op-shop.

author: Tandy
author_rank: Frequent Contributor
timestamp: January 09, 2016, 11:14:15 am
content: Who gets paid what depends on the priority status as a creditor as follows.Receivers fees, in some respects this makes sense as nobody would take on the job if they were not confident of getting paid.Secured CreditorsTypically banks are fixed charge holders, i.e they effectively own all of the assets of the company while the debt remains. The receiver is appointed by the banks and their primary responsibility is to liquidate those assets to repay the banks.Priority Unsecured CreditorsIn Australia employees of the company have a right to priority of payment for wages outstanding. Personally I think this is fair as it is bad enough loosing your job, the last thing you need is to not get paid for the work you have done.Unsecured CreditorsUnsecured creditors include companies that sold goods or services to the company, ie, suppliers, the Australian Taxation Office and consumers who have gift cards and warranty claims. Each group in this category will be given a percentage of the remaining funds.Where the system is open to criticism is that for example, in this case the best offer to buy the brand name, store leases and goodwill for could be A$100 million. This effectively means someone is buying the business without any of the unsecured debts. So suppliers and consumers get nothing but the banks get all but $40m of their loan back.If however they managed to raise $200 million then the remaining $60 million would be shared among all the unsecured creditors, so the reported $200 million owed would mean that for every $100 owed the unsecured creditors would get about $25.* Note this is how it works in Australia other countries are not the same.

author: nctnico
author_rank: Super Contributor
timestamp: January 09, 2016, 11:39:38 am
content: So there is no insurance for the employees? In the NL every comany has to pay an insurance premium to the government which is used to pay the employees if the employer is incapable of paying the salaries. This insurance only covers 13 weeks so it happens regulary that employees file for a bankcrupty.

author: Tandy
author_rank: Frequent Contributor
timestamp: January 09, 2016, 11:46:40 am
content: Australia has Fair Entitlements Guarantee (FEG), previously the General Employee Entitlements and Redundancy Scheme (GEERS).The FEG is a scheme of last resort, to assist employees who have lost their job because their employer entered liquidation or bankruptcy. The Australian government would rather that employes who are owed money are paid from the proceeds of the liquidation, hence why they have a priority status.

author: dannyf
author_rank: Super Contributor
timestamp: January 09, 2016, 11:57:03 am
content: QuoteCertain states in the US have that as well.The net results is that lenders are worry about making a loan in those states, reducing capital investments and job opportunities. Essentially, prospective employees ***pre-lost*** their jobs before they had the chance to have it.

author: nctnico
author_rank: Super Contributor
timestamp: January 09, 2016, 01:52:23 pm
content: Quote from: Tandy on January 09, 2016, 11:46:40 amI forgot: In the NL the government will also try to get the money they paid to the employees back from the liquidation proceeds (ofcourse). The idea however is that the process is as hassle free as possible but usually it isn't. Been there, done that and it is not funny to go to the supermarket with only a few coins left which where -so to speak- scraped from the between the cushions on the couch while waiting until the money gets paid.

author: HackedFridgeMagnet
author_rank: Super Contributor
timestamp: February 07, 2016, 12:36:03 am
content: Here is the quick summary from probably the best financial journalist in Australia.http://www.smh.com.au/business/retail/dick-smith-float-looks-like-window-dressing-20160205-gmmg88.htmlQuoteShort list of Winners: Anchorage, Deloitte, Ferrier HodgsonShort list of Losers: Staff at DS. People with money in Australian Super funds.

author: EEVblog
author_rank: Unknown
timestamp: February 25, 2016, 04:28:16 am
content: That's it, it's all over:http://www.smh.com.au/business/retail/dick-smith-to-close-all-stores-3000-staff-to-go-20160225-gn3ios.html

author: TerraHertz
author_rank: Super Contributor
timestamp: February 25, 2016, 06:09:44 am
content: Quote from: wilfred on January 08, 2016, 11:17:06 am'is other people's money' - This is the commonly held myth, and it's a lying pretense. Not at all how the Western banking system actually operates.Bank loans are the primary origin of all new money into the economy. When a bank 'makes a loan' to someone, they literally create that money from nothing, and deposit it into the account of the borrower. As such, banks commit fraud with every loan. There is no 'consideration' on their side of the loan contract, since they deliver nothing of any cost to them.If you wish to learn some things you didn't know about banking, here are a couple of lists of links:http://everist.org/archives/links/__Banking_links.txthttp://everist.org/archives/links/__Banking_fractional_reserve.txt

author: mrpackethead
author_rank: Super Contributor
timestamp: February 25, 2016, 06:29:53 am
content: Quote from: TerraHertz on February 25, 2016, 06:09:44 am

author: EEVblog
author_rank: Unknown
timestamp: February 25, 2016, 07:50:06 am
content: Quote from: wilfred on February 25, 2016, 06:40:41 amYes, they do. It's called fractional reserve lending.https://en.wikipedia.org/wiki/Fractional-reserve_bankingQuote

author: sleemanj
author_rank: Super Contributor
timestamp: February 25, 2016, 07:57:53 am
content: Do we really want this thread to devolve into a "bankers are evil" thread, that won't really be a very interesting discussion I feel. It wouldn't be long before somebody started harping on about a return to the Gold Standard.Maybe we could get back to some discussion about DSE.Found this on another forum...Link to contents on archive.org

author: EEVblog
author_rank: Unknown
timestamp: February 25, 2016, 08:12:17 am
content: Quote from: sleemanj on February 25, 2016, 07:57:53 amI once threw out my collection of DSE and Tandy catalogs I had since I was a kid, including every monthly Tandy flyerAnd interesting that Tricky Dick was on the cover given that he sold the business a year earlier

author: TerraHertz
author_rank: Super Contributor
timestamp: February 25, 2016, 08:19:15 am
content: Quote from: sleemanj on February 25, 2016, 07:57:53 amThere's a Speak and Spell hanging on the wall behind them. Remember those?Edit to add:Gnnfff... I'm _trying_ not to derail. But then you say things like:Quote from: wilfred on February 25, 2016, 06:40:41 amWell there's another surprise for you. The US 'Federal Reserve Bank' is not a US federal government instrumentality. It's a commercial bank, totally privately owned. And governments have not 'created money', since (in the USA) they gave away that right to the bankers in 1913. Even earlier for many British and Continental governments. Oh, I'm sorry, there was an exception - Pres Kennedy had the US government begin issuing notes not sourced from banker loans. One of his several unforgivable sins in the eyes of various forces.Governments take out loans (usually from banks) when they issue government bonds - usually 'bought' by banks with money the bank just created. Then guess where the money to repay with interest is going to come from?There's a great deal of smoke and mirrors in this topic, because it's at the root of raw power in this world, and the truth is not pretty. So there are beautifying myths... which I once believed, just like you.More on that:http://everist.org/archives/links/__FED_US_Federal_Reserve_links.txtBut, you won't learn anything at all from cursory glancing. You might try watching a short video called 'the eleventh marble'. Or, a book 'The Creature from Jekyll Island' by G E Griffin.Some friends of mine (in the bullion market coincidentally) put some effort into an attempt to find out who owns the Australian reserve bank. Last I heard they had not succeeded.Oh, and banks (the Commonwealth Bank specifically) also steal directly. My personal experience:http://everist.org/doc/base/title_deed/title_deed.htm(That page needs more work.)

author: sony mavica
author_rank: Frequent Contributor
timestamp: February 25, 2016, 08:21:22 am
content: sad to see there stores closing down but they should have some good closing down sales

author: nowlan
author_rank: Frequent Contributor
timestamp: February 25, 2016, 09:16:54 am
content: I thought they sold off all stock, to prop up capital for float?I walked past the local DSE last week, and they were closed to organise clearance items."When I owned Dick Smith it was a company selling electronic components. I've never been involved in consumer electronics I don't know how anyone could make any money out of it," Mr Smith said."Dont think anyone making money selling components either. Im sure JB HIFI+hardly normal make money sell box goods.

author: EEVblog
author_rank: Unknown
timestamp: February 25, 2016, 09:23:56 am
content: Quote from: Len on January 07, 2016, 01:17:40 amThe receivers first job is to ensure that the receivers get paid first, at exorbitant rates, seriously.

author: EEVblog
author_rank: Unknown
timestamp: February 25, 2016, 09:32:06 am
content: Quote from: wilfred on February 25, 2016, 09:18:15 amYou mean like the US banks that almost went belly-up, and instead of "very real consequences" got given 10's of billions of dollars for free with zero accountability and promptly went and used the money to give all their executives huge bonuses? That "rules and very real consequences"?

author: EEVblog
author_rank: Unknown
timestamp: February 25, 2016, 09:34:25 am
content: Quote from: TerraHertz on February 25, 2016, 08:19:15 amYes. And that everyone is THE Greatest Private Equity Heist of All Time!Staggering brilliant in it's conception, execution and longevity.

author: VK3DRB
author_rank: Super Contributor
timestamp: February 25, 2016, 09:41:15 am
content: I once worked for a once great technology company bought by a mob I call Private Equity Parasites. Let's just say, if you ever get taken over the private equity, look for another job as soon as you can.I feel sorry for the Dick Smith employees who worked diligently for relatively little pay. I wonder if Mr Dick Smith is going to help them out. But I bet your bottom dollar the greed mongers behind Anchorage Capital won't be helping the employees one iota.Bring on the government inquiry into Anchorage....http://www.anchoragecapital.com.au/case-study-dick-smith

author: mswhin63
author_rank: Frequent Contributor
timestamp: February 25, 2016, 09:51:12 am
content: Quote from: EEVblog on February 25, 2016, 09:23:56 amTrue, but there are only greedy "so called qualified" people running the industry and if they DON'T get paid exorbitant rates the whole receivership system would collapse. Would have been nice if it was regulated years ago but realistically years ago corruption was quite common-place and almost accepted this has lead to charging standards in the industry. Even with corruption easily audited now in the industry the receiver managers would never reduce their rates to more fair and realistic values.My little rant

author: GK
author_rank: Super Contributor
timestamp: February 25, 2016, 11:40:46 am
content: Quote from: wilfred on February 25, 2016, 09:40:50 amhttp://www.federalreserve.gov/faqs/about_14986.htmWho owns the Federal Reserve?The Federal Reserve System fulfills its public mission as an independent entity within government. It is not "owned" by anyone and is not a private, profit-making institution.As the nation's central bank, the Federal Reserve derives its authority from the Congress of the United States. It is considered an independent central bank because its monetary policy decisions do not have to be approved by the President or anyone else in the executive or legislative branches of government, it does not receive funding appropriated by the Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms.However, the Federal Reserve is subject to oversight by the Congress, which often reviews the Federal Reserve's activities and can alter its responsibilities by statute. Therefore, the Federal Reserve can be more accurately described as "independent within the government" rather than "independent of government."The 12 regional Federal Reserve Banks, which were established by the Congress as the operating arms of the nation's central banking system, are organized similarly to private corporations--possibly leading to some confusion about "ownership." For example, the Reserve Banks issue shares of stock to member banks. However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year.Some further reading on the particular definition of "ownership":http://www.frbsf.org/education/publications/doctor-econ/2003/september/private-public-corporationhttp://www.businessinsider.com/who-actually-owns-the-federal-reserve-2013-10/?r=AU&IR=TThis article addresses the "sinister/foreign control" conspiracy theories:http://www.usagold.com/federalreserve.html

author: rrinker
author_rank: Super Contributor
timestamp: February 25, 2016, 01:48:19 pm
content: Quote from: VK3DRB on February 25, 2016, 09:41:15 amEh, maybe. For the past 13+ years I've been working for a company owned by a private equity firm. It was formed by the private equity firm acquiring my company (so I haven't really changed jobs in nearly 20 years, just was bought out) and another. Since adding 4 other companies to the group. I don't know what goes on behind the scenes with the top management, but generally the equity group leaves us alone to operate on our own. In the beginning they were a bit more hands on, when the original merger first happened I got to meet the senior partners of the equity firm and they were very open with their intentions.

author: coppice
author_rank: Super Contributor
timestamp: February 25, 2016, 05:27:18 pm
content: Quote from: EEVblog on February 25, 2016, 09:23:56 amA friend in the UK told me the first sign he gets of bad times is his brother in law visiting Mercedes dealers. His brother in law is a receiver.

author: chrisc
author_rank: Unknown
timestamp: February 26, 2016, 01:53:06 am
content: Read today they are all shutting down. While the company today is for all intents and purposes a completely different entity than it was in the 70's and just happens to share a similar name, I can't help but feel a little pang.I got into electronics in the 70's while living in country Queensland. My first serious purchase of tools and parts was a mail-order from DSE in Sydney (this was before they had any Queensland stores). Later they opened in Buranda while I was going to school down there and I'd walk there in the afternoons maybe twice a week for a few years.I still have a few odd items I got from them in the 70's, including a Q-1136 analog multimeter (I didn't even need to look that number up as it's stuck in my head - I had to save my allowance for six months before I could buy it. I would look at it in the catalog every week when I put the money away!)I'm pretty sure I still have that catalog buried in a box somewhere.

author: TerraHertz
author_rank: Super Contributor
timestamp: February 26, 2016, 07:17:28 am
content: http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11595560Quote

author: Brumby
author_rank: Unknown
timestamp: February 26, 2016, 11:08:42 am
content: Quote from: VK3DRB on February 25, 2016, 09:41:15 amWhile it is his name on the storefront and one that everybody recognises, I believe he did his part by selling to an organisation that operated the company successfully for a further 30 years. It was just the recent pratts that stuffed it up.He did well through his own hard work and sacrifice and whether or not he does something is neither here nor there as far as I am concerned.

author: Stonent
author_rank: Super Contributor
timestamp: February 27, 2016, 02:14:27 am
content: Quote from: EEVblog on February 25, 2016, 08:12:17 amRadioshack used to do a mailer every so often as well probably monthly but I never noticed as a kid, just cool stuff in the mail. It was an excuse to bug dad to take me for my free 9V battery.

author: VK3DRB
author_rank: Super Contributor
timestamp: February 27, 2016, 02:31:39 am
content: Quote from: Brumby on February 26, 2016, 11:08:42 amQuote by Dick Smith according to the Adelaide Advertiser: “I just reckon there’s no money in consumer electronics — that’s why I sold out 30 years ago". If this is true, it begs the question: Did Dick Smith warn Woolworths about why he was selling up? Maybe Dick Smith told Woolies there is no money in it but Woolworths were just fools getting into something they knew nothing about, thinking they could do a better job than Dick Smith.

author: TerraHertz
author_rank: Super Contributor
timestamp: February 27, 2016, 02:42:50 am
content: Quote from: VK3DRB on February 27, 2016, 02:31:39 amWhy should he have? There's no legal or moral obligation to 'gift' others with your own foresight. In fact if he'd tried, he'd probably have been insulted and told to keep his delusions/pessimism to himself.

author: nowlan
author_rank: Frequent Contributor
timestamp: February 27, 2016, 05:45:02 am
content: > consumer electronics.Was he referring to white goods (kitchen) or black (hifi/tv) ?Seems to be all they selling. Not sure if they went crazy on mobile phones like RadioShack.

author: EEVblog
author_rank: Unknown
timestamp: February 27, 2016, 08:37:22 am
content: Tricky Dick was wrong that you can't make money on consumer retail. Tell that to Gerry Harvey and whoever own JB HiFi. You just have to be #1 or #2 at it and be big, really big.Dick Smith had tiny stores, that was their first problem. So he was right that Dick Smith itself as it stood couldn't win at consumer retail.

author: vk3yedotcom
author_rank: Frequent Contributor
timestamp: February 27, 2016, 10:08:33 am
content: Matt Ryan, the clever guy who wrote the Dick Smith Heist article for Forager is now pursuing a career outside funds managementhttps://foragerfunds.com/bristlemouth/signing-off-at-forager/(wonder if he'd be up for an EEV video interview?)Here's another, more recent article from Forager:https://foragerfunds.com/bristlemouth/closing-the-chapter-on-dick-smith/

author: VK3DRB
author_rank: Super Contributor
timestamp: February 27, 2016, 12:28:15 pm
content: Quote from: EEVblog on February 27, 2016, 08:37:22 amI think they should have stuck with their core business - electronic components, kit sets, radios and the like. Jaycar seems to done well out of it. Dick Smith could have been the best in the massive PC enthusiast market at a time when it was run by shonky importers who knew nothing about customer service. Instead Dick Smith went down the path of flogging overpriced Windows Vista craptops to semi-literate computer users.I actually bought a Dick Smith DVD player. When you turned it on, Dick Smith's cartooned head was on the menu. I hated that bloody head. It appeared on everything. For fun, you should include a Dick Smith cartoon head as an emoticon for a limited time.There is something very positive about the demise of the Dick Smith business...NO MORE DICK SMITH CARTOON HEAD!

author: dannyf
author_rank: Super Contributor
timestamp: February 27, 2016, 12:54:44 pm
content: "If this is true, it begs the question: !"In a free market of willing buyers and sellers, you necessarily have people on both ends of a transaction who take opposite views of the asset.Otherwise, the market doesn't function.Plus, the buyer or the seller has no fiduciary responsibility to the other side.You have some really strange views on how the market works.

author: VK3DRB
author_rank: Super Contributor
timestamp: February 28, 2016, 04:21:07 am
content: Quote from: dannyf on February 27, 2016, 12:54:44 pmI know how the market should work. It should not only be based on demand and supply, but also on openness and honesty. I think they call it "in good faith."If you buy a used car, you would want the seller to tell you everything they know that is wrong with it. Otherwise it is dishonesty by omission. There is no law requiring you to disclose for example that the car goes through a litre of oil every week. Years ago there was a used car dealer in Queensland, who would instruct all his salesmen to tell prospective buyers everything they knew that was WRONG with the car. They had to be 100% honest, else they would be fired. His business boomed.As one wise person said to me: "Honesty should not be the best policy. It should be the only policy." Yes, strange views indeed.

author: EEVblog
author_rank: Unknown
timestamp: February 28, 2016, 08:49:53 am
content: Quote from: VK3DRB on February 27, 2016, 12:28:15 pmSo what happens to the famous Dick Head? Do rights to it simply vanish into the ether?

author: vk3yedotcom
author_rank: Frequent Contributor
timestamp: February 28, 2016, 09:37:43 am
content: Quote from: EEVblog on February 28, 2016, 08:49:53 amGiven that the receivers are supposed to do what they can to return as much as possible to creditors might it be made available for sale as part of the company's trademarks and intellectual property?If it goes cheap could Jaycar buy it just for a laugh (or so it doesn't fall into the wrong hands - as Gary and Dick are friends)?{the thought crossed my mind as to whether Dick himself would buy it back - but he strikes me as a person who is able to let go (eg a pattern of moving on to different ventures) and has better uses for his money}

author: EEVblog
author_rank: Unknown
timestamp: February 28, 2016, 09:43:14 am
content: Quote from: vk3yedotcom on February 28, 2016, 09:37:43 amBugger that,I'dbuy it just for kicksI don't want the name, just the face, and I can start a new company called Dick Face Electronics

author: vk3yedotcom
author_rank: Frequent Contributor
timestamp: February 28, 2016, 09:47:39 am
content: Ah but Jaycar could buy it and then proceed to rebrand all its consumer products 'Dick Smith'.Eg this device.http://www.jaycar.com.au/General-Consumer/Toys-%26-Games/Practical-Joker-Products/FART-MACHINE-W-3SOUNDS-%26-REMOTE-CTRL/p/GH1088To give them a perpetual reminder not to stray from their roots and go too far down the consumer path.

author: VK3DRB
author_rank: Super Contributor
timestamp: February 28, 2016, 11:46:29 am
content: Quote from: EEVblog on February 28, 2016, 09:43:14 amHow about Dick Head Electronics? Featuring that head as the icon. You can start by selling matches. It appears the Dick Smith company may dropped that head some time ago. I have no idea when or why. In this advertisement, the head is everywhere. (The bald guy looks out of place.)I appreciated Dick's "buy Australian" stance, despite him making a fortune out of imports. I also like his stance against greedy companies dodging tax, the population explosion dreams that only our politicians seem to want, and the highlighting the lack of philanthropy (or stinginess) by the filthy rich in Australia. Unlike most of our slimy politicians, Dick does have altruistic beliefs. I think he would make a good politician and would be good for Australia."SORRY DICK, IT DOESN'T WORK": With his foods he was patriotic. However there was one big stuff-up by some Dick Head. Dick Smith Foods was marketing ANZAC Biscuits as ANZAC Cookies. Dick Smith himself, his product managers, the packaging designers, the printers, the distributors, the quality control (if there was any), the stores and the general media should have detected the blunder. I ended writing to Dick Smith Foods and informing them that ANZAC Biscuits made for our soldiers in World War 1 were never called ANZAC Cookies, and that Australia was not and is not an American outpost. To their credit, the company immediately changed the name to Anzac Biscuits.

author: dannyf
author_rank: Super Contributor
timestamp: February 28, 2016, 12:11:06 pm
content: "I know how the market should work. It should not only be based on demand and supply, but also on openness and honesty. I think they call it "in good faith"You say that you know how the market works and then your very next sentence proves conclusively otherwise.The kind of market you want doesn't exist, because if it did, it would break down right away. How do you for example prove that you were honest when you said that your car worked, given that it broke down moment after the buyer had paid for it?The market is the say it is for a reason. Naivety or lack of common sense isn't going to improve it, no matter how good it sounds on paper.

author: vk3yedotcom
author_rank: Frequent Contributor
timestamp: March 01, 2016, 09:47:05 pm
content: Ferrier Hodgson has just advertised for expressions of interest in the intellectual property of the company (eg branding etc).May be in newspapers or online (need to search - found it in the Facebook page for DS staff and ex staff)

author: EEVblog
author_rank: Unknown
timestamp: March 01, 2016, 09:55:47 pm
content: Quote from: vk3yedotcom on March 01, 2016, 09:47:05 pmCan't seem to find it.If anyone has a link please post it.

author: TerraHertz
author_rank: Super Contributor
timestamp: March 02, 2016, 04:14:38 am
content: Ha ha imagine if it was cheap and Dave bought the IP rights.The 'Dick Head' jokes were already done, but adding 'forum' should give some fine new combinations.Edit: Here you go:http://www.applianceretailer.com.au/2016/03/dick-smith-ip-up-for-sale/#.VtZouL3DB64WTH? "EOI should be lodged via email before 5:00pm AEST on 4 March 2016"Why the rush?

author: stejep
author_rank: Contributor
timestamp: March 02, 2016, 09:19:47 am
content: Do you think a EOI of $5 would get it.Maybe The Real Dick Smith could buy his company back.

author: TerraHertz
author_rank: Super Contributor
timestamp: March 02, 2016, 11:35:50 am
content: It will be interesting to see what it goes for. Notice they made the interval too short for anyone to do a crowdfunding.Imagine the 4chan crowd collectively buying it. That would bring new meaning to 'owned'.

author: station240
author_rank: Unknown
timestamp: March 03, 2016, 12:12:46 am
content: Quote from: TerraHertz on March 02, 2016, 04:14:38 amThe receivers have a time limit on distributing any money they can recover. Anyway it's just expressions of interest, the next step is to actually look at who is going to pay the most.I fear it could end up in chinese hands, and we get a flood of cheap nasty DSE branded TV and other consumer junk.

author: EEVblog
author_rank: Unknown
timestamp: March 03, 2016, 01:04:54 am
content: Quote from: TerraHertz on March 02, 2016, 04:14:38 amIt would have to go ridiculously cheap for that the happen, like me being the only bidder.

author: TerraHertz
author_rank: Super Contributor
timestamp: March 03, 2016, 06:17:08 am
content: You didn't say you didn't bid.We should all keep checking the 'What did you buy today? Post your latest purchase!' thread.

author: EEVblog
author_rank: Unknown
timestamp: March 03, 2016, 08:04:11 am
content: I think we need an NDA smiley? This will have to do

author: aargee
author_rank: Frequent Contributor
timestamp: March 03, 2016, 12:48:53 pm
content: Sort of brings up an interesting point, whoever buys the DS IP and *Customer Data* - will they have to stick to whatever the original customer agreement for the use of such data was.i.e. say if one of the privacy terms was "Not to be given or used outside of the DS organisation" or "We will never use your data for ... blah blah blah..", DS is a company which essentially now won't exist, so the data is useless? Or do those agreements mean nothing here or anywhere?Say $50k for the IP. I reckon Gerry Harvey would be interested or the Good Guys, etc it's peanuts in the advertising game.

author: dannyf
author_rank: Super Contributor
timestamp: March 03, 2016, 02:15:45 pm
content: QuoteIt depends on the nature of the sale.In a normal transaction (DS selling it to others), the customer agreement is enforceable and the buyer of that data cannot violate it.If the transaction is sale of the equity, the new buyer can use the data as long as it is in comformance with the customer agreement - here the buyer essentially becomes DS.In a US bankruptcy, the original customer agreement has been white washed and is void and not enforceable so the buyer of the customer data can do whatever s/he deems appropriate - obviously subject to whatever laws there are.Unfortunately, bankruptcy laws vary significantly from one jurisdiction to another so ...

author: TerraHertz
author_rank: Super Contributor
timestamp: March 05, 2016, 10:56:18 pm
content: A friend emailed me this very concise summary of what happened with Dick Smith company. No attribution and I can't find the original source with google, sorry.--------------Asset stripping in action: Why is Dick Smith Electronics closing down and why are it's 3,300 employees now out of work? Let's run through a very simple timeline of events in plain English.1. In 2012 Anchorage Capital, a private equity group, purchased Dick Smith from Woolworths for $115 million.2. Anchorage pays $20 million in cash with the balance plus interest to follow.3. Dick Smith has cash reserves of $12.6 million so Anchorage has effectively paid only $7.4 million.4. On 26 November 2012, Dick Smith had inventory that was valued at $371m but Anchorage now wrote the value down by $58 million.5. In 2013 Dick Smith had EOFY clearance sales where the stock was sold off. The clearance sales saw $200 million of stock sold for $140 million (the operating cash flow) but due to the write downs $7 million was profit. Dick Smith did not restock the inventory so the $140 million was now classed as profit.6. Anchorage uses $117 million of the "profit" to pay Woolworths the balance of the purchase plus interest and uses the rest to open 15 new stores and take over the electronics departments of David Jones to maximise the companyâ€™s initial public offering (IPO) valuation.7. Anchorage now has a company with little inventory, huge sales growth and big profits. The books look amazing and Anchorage now forecasts a huge profit for 2014 and the business is floated on the stock market at $2.20 a share which brings in $520 million.8. Anchorage sold the last of the shares in late 2014 and walked away with a $500 million return for their $10 million investment two years earlier.9. The new shareholders were now footing the bill for repurchasing inventory. This should have resulted in a poor operating cash flow, but most of the repurchasing was funded by suppliers. Come the end of the 2015 financial year, the operating cash flow was negative $4 million and the suppliers were demanding payment.10. The shareholders are now forced to take out a $71 million loan to finance purchases while sales and profit margins are sinking. Now owing $150 million Dick Smith goes into administration.11. In 2016 the stores are closing down and 3,300 employees are looking for new jobs.Economist Jason Murphy said Anchorage had used a perfectly legal accounting maneuver to write down the value of its inventory, raise profits through a national fire sale, neglect to restock shelves and open a massive number of new stores to maximise the company's IPO valuation. It's what private equity firms do, and why some people live in $12 million harbourfront mansions, while others scratch their heads wondering what just happened.It's just an example of how capitalism works!----------------

author: mswhin63
author_rank: Frequent Contributor
timestamp: March 06, 2016, 03:05:38 am
content: Sad indictment of our society that companies hold over everyone on blatant risk ventures all in a way to make a quick buck.No wonder the developed world is full of cynicism.Getting really frustrated the way Australia is heading and wonder how the new "Innovation Boom" will be played out.

author: profany
author_rank: Contributor
timestamp: March 06, 2016, 06:56:05 pm
content: wow , have no idea of that, wht a greate sketch

author: dannyf
author_rank: Super Contributor
timestamp: March 07, 2016, 12:12:51 am
content: Many of those stories seem to be written by people who lack even rudimentary finance knowledge.Take this for example:QuoteThat was widely quoted but if the writer had followed the story then or had just some common knowledge about IPOs they would know that there was a lock-up period and the equity didn't quite realize that valuation when they sold their shares.This is really a story of someone finding a gem in the rough and dumb investors got hosed. That kind of price discovery and that kind of punishment for stupidity is exactly what you need in a free market, to avoid bubbles, and to reward intelligent investing.If we had more cases like that, we would have waded out dumb investors and we would not have had financial crisis. So those people you are trying to crucify are exactly the people you need to have.I suspect all this publicity is drummed up for a lawsuit sometime down the road. And the dumb public is just helping to shot themselves in the foot.

author: hamster_nz
author_rank: Super Contributor
timestamp: March 07, 2016, 03:02:42 am
content: Quote from: dannyf on March 07, 2016, 12:12:51 amIt was more like polishing a turd until it shined like a diamond...

author: HackedFridgeMagnet
author_rank: Super Contributor
timestamp: March 07, 2016, 03:07:37 am
content: Funny, it doesn't smell like a diamond?

author: hamster_nz
author_rank: Super Contributor
timestamp: March 07, 2016, 03:10:11 am
content: Quote from: HackedFridgeMagnet on March 07, 2016, 03:07:37 amBut look, it is all shiney? Can you see the sun glinting off of it? It positively glistens!Go on, by a little of this rare brown diamond - how can you lose!If you don't buy it somebody else will, and you will be sorry!

author: VK3DRB
author_rank: Super Contributor
timestamp: March 07, 2016, 09:49:05 am
content: Quote from: dannyf on March 07, 2016, 12:12:51 amEveryone is entitled to an opinion I guess, even those who believe in the Illuminati and other frogshit.For a start, I would not call Anchorage "intelligent investors". They are more like a "pack of greedy parasites". 3,000 decent and honest workers are losing their jobs. Where is the evidence Anchorage cares one bit about the Dick Smith workers?For a healthy society to function and prosper there has to be goodwill, altruism, fair play, helping ones neighbour out, doing your fair share and paying your fair share, honesty, respect for others, compassion, volunteering and charity work; as well as the desire to enrich the lives for all. I didn't see any of those traits in the "successful" GFC bankers, Wall Street snake oil salesmen and mortgage scammers. The US government used money it effectively stole from taxpayers to prop up these parasites and given them massive bonuses.I suggest you do some research on a US company called Lincoln Electric. A remarkable company that has stood the test of time.http://www.lincolnelectric.com/en-au/company/Pages/company-history.aspx. It it were driven by greedy investors and private equity and your brand of capitalism, it would have long gone.In Iceland the entire country was left to go bankrupt. Many of its banking heads and parasites went to jail and rightly so. Now its economy is greatly improving, especially in the high tech industry and tourism. Not so the USA. It should have been left to go bankrupt so it could heal. Unfortunately it still has a big hangover...http://www.usdebtclock.org/Free market capitalism is destined to fail because of human trait of greed. The same reason why communism has failed miserably.... greed by a few hypocrites who prosper on the sweat of those they control.

author: dannyf
author_rank: Super Contributor
timestamp: March 07, 2016, 11:56:20 am
content: "Free market capitalism is destined to fail because of human trait of greed."Looks like the only thing you hate more than capitalism is to vote with your feet and actually live in a non-capitalism utopia of your dream.I wonder why?

author: VK3DRB
author_rank: Super Contributor
timestamp: March 07, 2016, 12:14:26 pm
content: Quote from: dannyf on March 07, 2016, 11:56:20 amI should have saiduncontrolledfree market capitalism is bad thing. Ever seen Metropolis?

author: dannyf
author_rank: Super Contributor
timestamp: March 07, 2016, 12:19:14 pm
content: "I should have said uncontrolled free market capitalism is bad thing"Where do you find uncontrolled capitalism?

author: VK3DRB
author_rank: Super Contributor
timestamp: March 08, 2016, 01:05:22 pm
content: Quote from: dannyf on March 07, 2016, 12:19:14 pmRight here in Australia...in the Commonwealth Bank, the most unethical pack of bastards one could ever find in business.http://www.smh.com.au/business/banking-and-finance/comminsure-when-is-enough-enough-20160308-gnds35.html.You might find these bastards as heroes for making billions of dollars for their money hungry shareholders, despite them treating customers and even some of their own employees worse than dog turds.A good example of uncontrolled free market capitalism where extreme greed rules at the complete expense of ethical behaviour. And it is uncontrolled because it has been going on for years under the "watchful" eye of its CEO and the Australian government. It is if anything, out of control.

author: TerraHertz
author_rank: Super Contributor
timestamp: March 08, 2016, 01:26:37 pm
content: Quote from: VK3DRB on March 08, 2016, 01:05:22 pmSeconded.I've mentioned my experience with CBA before:http://everist.org/doc/base/title_deed/title_deed.htm

author: cimmo
author_rank: Frequent Contributor
timestamp: March 08, 2016, 06:14:08 pm
content: Quote from: VK3DRB on March 07, 2016, 09:49:05 amThe problem is that we don't actually have 'free market capitalism'. We have privatised profits and socialised losses.This will still fail, eventually.And it will be very ugly.

author: dannyf
author_rank: Super Contributor
timestamp: March 08, 2016, 07:37:12 pm
content: "We have privatised profits and socialised losses."For every profitable business, there are tends, hundreds or thousands failures that produced for their investors losses.Fortunately, you don't hear those stories.Or if profits are so easy and losses so socialized, only fools wouldn't jump into the game.You would know that if you had out your own capital at risk. Try it and you may appreciate those profiteers more.

author: dannyf
author_rank: Super Contributor
timestamp: March 08, 2016, 08:18:47 pm
content: It is always easy and tempting to criticise others for taking outsized profits if you haven't put your own money on the line, if you haven't worried about making that payroll, if you haven't mortgaged your house to start your own businesses.I have done them all, and I can tell you the most foolish thing I have done in life was to start a business. No amount of payoff will ever get me to do that again, especially in today's environment.

author: HackedFridgeMagnet
author_rank: Super Contributor
timestamp: March 10, 2016, 10:13:47 pm
content: Watch out Anchorage is at it again.Only I don't think Bunnings has to watch out, just the people with money in superannuation.http://www.smh.com.au/business/retail/anchorage-hatches-plan-for-new-force-in-hardware-20160310-gnfbx9.html

author: dannyf
author_rank: Super Contributor
timestamp: March 10, 2016, 11:20:39 pm
content: I see some poor retirees who hold shares in those entities aa potential winners.Or LP investors in anchroage if this turns out to be as successful as the previous transaction.

author: HackedFridgeMagnet
author_rank: Super Contributor
timestamp: March 11, 2016, 06:49:00 am
content: One second thoughts,If we are being told in the newspaper that Anchorage is going to buy then it's more likely that they decided not to buy but that someone is trying to ramp a few extra cents out of the share price.So sell those Metcash shares now.

author: VK3DRB
author_rank: Super Contributor
timestamp: March 11, 2016, 10:17:11 am
content: Woolworthless also owns Home Hardware - a very profitable and well run business. If Anchorage or any other private equity scum acquires Home Hardware, they will ruin a great hardware chain.

author: dannyf
author_rank: Super Contributor
timestamp: March 11, 2016, 11:53:18 am
content: QuoteThen you should mortgage everything you have, and short the stock. Not only you will punish Anchorage for not controlling their capitalism the way you want, you will also make boat load of money by following your own words.You should also convince your friends, your relatives, your neighbors, and your co-workers, etc., to all join. You will make loads of rich friends in the end.Too bad, you will not have enough conviction in yourself to follow through.

author: VK3DRB
author_rank: Super Contributor
timestamp: March 11, 2016, 01:19:25 pm
content: Quote from: dannyf on March 11, 2016, 11:53:18 amI actually work hard and smart for all the money I have. I don't rip off anyone and I certainly don't gamble on the stock exchange. Low risk, low return, low stress, long and happy life. And I can sleep at night. That's the way I like it.A bloke I knew made a massive fortune doing similar to what you said. He mortgaged everything and borrowed off friends and family and put all the money into a ponzi scheme where he made 63,000% profit in around 6 months. He made in excess of $100 million today's currency whilst other fools in the scheme lost everything. But the chap was a miserable little toad who had zero integrity. His word was worth nothing. One of his kids committed suicide. He treated his wife like a piece of garbage. In my opinion he is a bigger fool than those gave him all their money in the ponzi scheme.Some people measure success on how much money they can make, but it always comes at a price. But what is the point of gaining the whole world when you lose your soul in the process. I suggest you watch a film called The Big Short.

author: dannyf
author_rank: Super Contributor
timestamp: March 11, 2016, 01:40:11 pm
content: "I actually work hard and smart for all the money I have. I don't rip off anyone and I certainly don't gamble on the stock exchange."You aren't gambling at all: you know precisely how badly the deal will turn out to be, you have seen the movie before, you are smart and you have done your home work. By shorting this stock, you are making a sure bet. You are going to make a fortune for yourself and your friends. You will deal the evil anchrogae capitalists social justice they deserve. And you will be the hero that we will sign to for generations to come. You are the robinhood of the 21st century.Yeah, it is going to be hard to reconcile your seeming conviction in how badly the stock will perform and your own lack of conviction in your conviction.If you don't believe your own words why do you expect anyone else to take you seriously?

author: hamster_nz
author_rank: Super Contributor
timestamp: March 11, 2016, 06:26:50 pm
content: Quote from: dannyf on March 11, 2016, 01:40:11 pmTo summarize, all VK3DRB was saying as "It won't end happy, and am not one to profit from the misfortune of others", vs you say "go on, put your money on an unhappy ending or you are just talking sh@t".I know which one I take seriously...

author: station240
author_rank: Unknown
timestamp: March 13, 2016, 12:18:56 pm
content: http://www.itnews.com.au/news/dick-smith-receiver-puts-customer-databases-up-for-sale-416422Dick Smith receiver puts customer databases up for saleQuoteQuoteScum, absolute scum.

author: dannyf
author_rank: Super Contributor
timestamp: March 13, 2016, 12:26:58 pm
content: "Scum, absolute scum."The receiver did the right thing: his mandate is to maximize for all debters. That means selling anything that has value, including the list.That's just the high price you pay for a small discount.

author: vk3yedotcom
author_rank: Frequent Contributor
timestamp: March 14, 2016, 05:46:11 pm
content: Kogan has bought all the Dick Smith intellectual property for an undisclosed sum.http://www.smh.com.au/business/retail/dick-smith-brand-to-be-resurrected-by-ruslan-kogan-20160314-gnibrn.html

author: nowlan
author_rank: Frequent Contributor
timestamp: March 15, 2016, 01:37:38 am
content: Just got an email from them saying they being sold off ot kogan. I can opt out of having my personal details sold across.kogan.com, australia's largest online retail website, intends to continue the legacy of dick smith brand and run the dick smith business as an online-only consumer electronics retailer.

author: VK3DRB
author_rank: Super Contributor
timestamp: March 15, 2016, 01:51:36 am
content: Kogan sold me a phone, took my money online, issued a receipt and then refused to send me the phone, saying "he sold it too cheap". It took me a month to get my money back. He violated the sales contract. Kogan also sold me a "new" phone down the track that was full of crapware from a foreign telephone company. He would not give me my money back. The only to bypass it was to root the phone.I will never walk into a Dick Smith store if Ruslan Kogan has anything to do with it.

author: Tandy
author_rank: Frequent Contributor
timestamp: March 15, 2016, 09:44:55 am
content: Quote from: VK3DRB on March 15, 2016, 01:51:36 amNobody will because they bought the domain name and trademarks for a newonline onlybusiness using the Dick Smith name.

author: vk3yedotcom
author_rank: Frequent Contributor
timestamp: March 16, 2016, 11:15:52 am
content: Of mainly historical interest is this list of DSE trademarks registeredhttp://www.ipaustralia.com.au/applicant/dick-smith-electronics-pty-limited/trademarks/Some have pictures. Eg the Wizz looks a lot like 'Little Dick'.http://www.ipaustralia.com.au/applicant/dick-smith-electronics-pty-limited/trademarks/418434/

author: TerraHertz
author_rank: Super Contributor
timestamp: March 27, 2016, 11:03:48 pm
content: Dick Smith: Receivership Customer FAQhttps://media1.dicksmith.com.au/media/wysiwyg/banner/Customer_FAQ_-_040316_5752064_1.pdf?_ga=1.34190887.769642960.1459118894Does anyone know the actual closing date? It doesn't seem to be mentioned in that FAQ.I'm curious because although the DS site advertises their closing down sale, the prices are not exactly desperation level.For example, batteries.Edit 20160505: link to new thread:https://www.eevblog.com/forum/chat/kogan-buys-dick-smith's-online-business/

author: Muttley Snickers
author_rank: Unknown
timestamp: April 03, 2016, 02:57:56 pm
content: Well I was all good and ready to nod off just when an add on TV indicated that Dick Smith were having a 35-80% off closing down sale, inspired by the prospect of saving a few bucks on a decent camera I went and compared a few items with other retailers and no surprises here folks, their sales prices aren't all that great not that they ever were to begin with.Also came across some other information in relation to an ongoing ASIC investigation and the leakage of sales information to competitors, sounds dramatic and probably is but from what I have seen ASIC are a bit of a joke in their own right so don't expect too much to come from their professional oversight skills.Dick Smith, 35-80% Off What Exactly ?https://www.dicksmith.com.au/Receiver Ferrier Hodgson Refers Issues to ASiChttp://www.smh.com.au/business/retail/dick-smith-receiver-ferrier-hodgson-refers-issues-to-asic-20160401-gnvvaf.htmlConfidential Sales Information Leakedhttp://www.channelnews.com.au/uncategorized/exclusive-harvey-norman-franchisees-given-confidential-dick-smith-sales-numbers-as-asic-probe-collapse/I'm off to bed, wake me up if they really get to 80% off something thats worth a look in......(yawn emoticon)

author: dannyf
author_rank: Super Contributor
timestamp: April 03, 2016, 04:15:20 pm
content: QuoteSounds like the victims here (=law-abiding taxpayers) need to pony up more money to fund another government agency so that they can be better protected by the people who perpetrated the very crime on them.

author: Cubdriver
author_rank: Unknown
timestamp: April 03, 2016, 04:49:15 pm
content: Quote from: Muttley Snickers on April 03, 2016, 02:57:56 pmAhh, the dreaded asterisk. What the large print giveth, the small print taketh away. Typical.-Pat

author: vk3yedotcom
author_rank: Frequent Contributor
timestamp: April 10, 2016, 08:12:11 pm
content: A great 1978 ABC TV documentary on Dick Smith.

author: Tandy
author_rank: Frequent Contributor
timestamp: April 15, 2016, 01:34:57 pm
content: The 'Electronic Dick' on the van in that video got a childish snigger out of me.

author: hydrogen maser
author_rank: Regular Contributor
timestamp: April 17, 2016, 01:20:04 pm
content: Australia's Dick finally drops offVulture South ventures visits troubled tech retailer Dick Smith on its last trading dayhttp://www.theregister.co.uk/2016/04/17/dick_smith_stores_close_forever/

author: dannyf
author_rank: Super Contributor
timestamp: April 17, 2016, 01:57:45 pm
content: QuoteThat's very easy to test: put your money at risk, start a business and run it into the ground. And see how much of that loss you can socialize on the rest of the society,

author: vk3yedotcom
author_rank: Frequent Contributor
timestamp: April 17, 2016, 09:10:43 pm
content: Quote from: dannyf on April 17, 2016, 01:57:45 pmAt the small business or startup level this is true. If a small business fails it's the businessman's problem. Governments typically don't intervene in sectors like retail.But if a big agricultural or manufacturing business fails it's the nation's problem. Governments are scared of them failing (or threatening same if tax concessions aren't given).Governments have historically provided support for large-scale industry through tariffs, import restrictions, subsidies, local content rules, cheap land, concessional electricity, etc.This comes at an opportunity cost and means the rest of us pay more taxes or higher prices. And long term industries, after accepting various concessions, may pull out anyway.The cynic might argue that some of the more highly subsidised industries are better at lobbying governments than making themselves more efficient.For instance Australian book publishing which opposed parallel importing rules. This in turn is being overtaken by electronic publishing (eg Amazon etc) which is also giving their authors a bigger cut.

author: dannyf
author_rank: Super Contributor
timestamp: April 17, 2016, 09:25:47 pm
content: QuoteSo saving such a business is in the interest of the nation, thus a public good.Doesn't sound like socialization of losses, does it?

author: hamster_nz
author_rank: Super Contributor
timestamp: April 17, 2016, 11:48:36 pm
content: (spurred on by various comments on this, and other threads)Quite a large part of economic theory seems to be nothing but the accepted dogma, and completely useless. When the market doesn't respond as 'it should' a new external actor is introduced into the mix, to explain why the current model is still a fundamental truth, even though it lacks any sort of predictive power. ("The market fell today as investors consolidated their gains", "The markets rallied on the back of the expected announcement from China" and other such meaning less retrospective justification)Take for example the prices of electricity in NZ, with it's supposedly deregulated market - the 'law' of supply and demand would have if a large proportion of demand goes (for example if the Tiwai Point aluminum smelter closed) then it is the LAW that the price to the rest of the market should get cheaper electricity - over supply, under demand, in what is currently a supply-constrained market. However, we then get told (and I can't find reference for this) that should it close, and stop using it's cheap hydro power then the electricity prices for the rest of the country will rise.On EEVBlog I see a lot of arguments built on top of economic theory, but for me the foundations of such arguments are often so rotten they don't provide support for much other than hand-waving.It is almost as bad as psychology:https://www.theguardian.com/science/2015/aug/27/study-delivers-bleak-verdict-on-validity-of-psychology-experiment-results

author: vk3yedotcom
author_rank: Frequent Contributor
timestamp: April 21, 2016, 12:29:50 pm
content: Quote from: wilfred on April 21, 2016, 03:16:15 amLast thing was, a few weeks ago, a reel of Digitor 60/40 solder. N2619. It's even made in Australia.

author: Monittosan
author_rank: Regular Contributor
timestamp: April 24, 2016, 03:02:43 am
content: I bought that as well. They had just re listed solder at that point as I herd late last year more electronics tools was going to become available.I picked up 100M drum of Harmony Gold Flat OFC cable w2001 for 99% off $2.98 at the emporium cbd store early december.

author: Muttley Snickers
author_rank: Unknown
timestamp: April 25, 2016, 06:13:00 am
content: There is not much left in stores at all according to the manager at our local store whom I just got off the phone with, empty boxes and a few useless gadgets I think was the quote, anyway I missed out on a great deal on the Canon EOS 1200D which were all gone, bugger.I passed on our gratitude and commiserations to the manager to in turn relay on to other staff members, last day is the third of May apparently and I also pointed him to this thread and perhaps he may be kind enough to chime in and give us an insight and perspective from the other side of the counter.Gutted like a fish.http://www.kotaku.com.au/2016/04/dick-smith-is-a-sad-wasteland-of-defeat-and-broken-dreams/Blood from a stone.http://www.smh.com.au/business/retail/dick-smith-shareholders-sign-up-for-class-action-20160421-gobtfo.html

author: VK3DRB
author_rank: Super Contributor
timestamp: April 28, 2016, 09:09:17 am
content: Quote from: Muttley Snickers on April 25, 2016, 06:13:00 amDick Smith might be a laughing stock because people are laughing at his stockhttp://www.theage.com.au/business/retail/dick-smith-closing-down-sale-the-strangest-saddest-stuff-thats-left-20160428-gogye1.htmlThe only people really laughing are Anchorage Capital - all the way to the bank. Did Anchorage Capital pay some money in goodwill or entitlements to the Dick Smith employees? Somehow I doubt it very much.Sorry Dick, it doesn't work.RIP Dick Smith.

author: rstofer
author_rank: Super Contributor
timestamp: August 07, 2016, 07:49:49 pm
content: Quote from: hamster_nz on April 17, 2016, 11:48:36 pmOf course the price of electricity will rise. First, it isn't free enterprise, it is normally a public utility with any number of regulations - such as keeping the system working.Take the example of solar power in California. Our utility rate has 4 price tiers; the more you use the more it costs incrementally. When you apply solar, you reduce the number of kWh you buy at the higher tiers. The lowest tier is essentially subsidized to provide a basic level of service to the economically challenged. The higher tiers pay for both incremental demand (buying power from low volume, high cost generators) and system operation. With solar, the high tier energy is reduced, less money is available for maintenance and, big surprise, there is a price increase for the lowest tier. Using less costs more.We had a water conservation program this year. It was highly successful - for everybody except the system operator who couldn't afford to maintain the infrastructure with the reduced revenue. So, they raised prices! Now we get to pay high prices for water we don't use.As a naive stockholder, I have only one expectation: The value of my stock increases! If it doesn't, I'm going to take my marbles and go home. If I were invested in a PE firm, I would expect them to do whatever is legal to increase the value of my investment. Buy a firm, chop it up, sell the pieces, I don't care. People out of work, buildings left empty, I don't care. I want my investment to increase! Providing job opportunities (training) is not my job! It's a matter for the government to deal with. If my state runs all the businesses out of town, it's on them. I expect the companies to move to wherever they can make me the most money. Social welfare is a government program, not mine!There's nothing nice and cuddly about having your retirement at risk. But if you're not heavily invested, you won't be retired very long!

author: dannyf
author_rank: Super Contributor
timestamp: August 07, 2016, 08:16:33 pm
content: QuoteAnd the LPs and their investors, many of them are retirees.QuoteWhy should they?Think about those people that you had displaced in your life, the job seekers who you competed out, the kids who would have played on the ground where you built your house, the dying kids in Africa just because you couldn't forgo a $10 lunch, .....Did you ever pay some money in goodwill or entitlement to those folks?Somehow I doubt it very much.Don't hold others to a standard that you aren't willing to hold yourself to.

author: HackedFridgeMagnet
author_rank: Super Contributor
timestamp: October 06, 2016, 08:06:35 am
content: http://www.theage.com.au/business/retail/dick-smith-ceo-denies-questionable-rebate-practices-20161005-grveyy.htmlIt's clear to me that Anchorage hired some stooge to dress up fake short term profits, so they can sell/float the company to stupid investors, which includes mainly the Australian Super Funds.Anchorage are experts at this MO.You really would have to be a fool to buy into a company that was floated by Anchorage or similar.They did nothing about turning this company into a going concern, and very probably destroyed it by buying whatever rubbish they got rebates on.I doubt they will make any of it stick to the ex CEO but I hope they can.There is no doubt in my mind he was working for Anchorage and not working for Dick Smith.

author: HackedFridgeMagnet
author_rank: Super Contributor
timestamp: October 06, 2016, 08:45:55 am
content: I bought quite a lot of them too. But they don't seem to last.

author: TerraHertz
author_rank: Super Contributor
timestamp: October 08, 2016, 04:27:52 am
content: http://www.channelnews.com.au/retailers-charged-with-rebate-fraud-as-dick-smith-case-continues/Retailers Charged With ‘Rebate’ Fraud As Dick Smith Case ContinuesBy David Richards| 12 Sep 2016"Dick Smith directors and former senior executives now face the real possibility that they could be charged with fraud offences, if investigators of the $400 million collapse of the mass retailer, decide that there is enough evidence relating to the manipulation of rebates and information to the market."From a month ago, and the article doesn't actually imply as much as its headline. But one can hope...