Electronics retailer Dick Smith has struck a three-year deal that will see it take over David Jones’ struggling electronics business.
As of 1 October, Dick Smith will buy all of David Jones’ inventory of digital products, including TVs, computers, tablets, home office and audiovisual devices.
David Jones’ electronics departments will be rebranded as “David Jones Electronics Powered by Dick Smith”.
Dick Smith will pay David Jones a monthly fee. The latter expects to make money from the deal within a year.
The Australian Financial Review reported late last month that Dick Smith private equity owner Anchorage Capital Partners could exit the business early next year, likely through an IPO.
Anchorage bought Dick Smith from Woolworths for $20 million last September.
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