Dick Smith’s receivers, Ferrier Hodgson, have announced all stores will close by April 30, in line with original prediction that the closures would take 6 to 8 weeks.
All stores have been notified, but just 35 have been given an exact closing date so far. The first two stores have already been closed, while another big batch will shut their doors on April 9, followed by more on April 16.
Only one won’t be closing – the Dick Smith online store, which has been bought by online retailer Ruslan Kogan.
Kogan says he wants to “save the legacy of this great Australian brand, by transitioning to an online only model”, and will transform it using his own retail systems and architecture.
The end of Dick Smith as a business was originally announced on 25 February.
Approximately 2,460 staff will lose their jobs across 301 stores in Australia along with approximately 430 staff from 62 stores in New Zealand. All will receive redundancy payouts unless they resign earlier.
All employees will rank as priority in unsecured claims, ahead of secured creditors and are expected to be paid out in full. Any entitlements accrued such as wages, superannuation or annual leave during the receivership period will be paid in their final wage payment.
Anything pre-appointment and redundancy payouts will be paid as soon as funds are available.
Ferrier Hodgson said the distribution of those funds will take up to another month after the wind down process is completed – roughly when all stores are closed.
Receiver James Stewart said “We would like to thank the Dick Smith employees for their support during the controlled closure process. This is a difficult and uncertain time for them and we have really appreciated their commitment.”
It was reported that Dick Smith was bleeding close to $3 million a week as receivers Ferrier Hodgson attempted but failed to find a buyer for the business.
The closure comes after Ferrier Hodgson announced in early January that the Australian electronics chain would be going into voluntary administration after poor management and sales forced it into large debts.