Anchorage Capital’s takeover of Dick Smith has proved to be a winning move as the huge electronics retailer reports to have doubled its earnings.
Dick Smith fund managers believe it could be worth $600 million when re-listed on the market in 2014, reports The Fin.
“We’ve just restructured the business so per dollar sold it’s more profitable and we have a system in place that’s right for this category,” Tony Abboud head of Dick Smith’s new management team told The AFR.
Keeping the focus simple and direct has meant Abboud has reversed a slide in earnings in less than a year, a feat Woolworths failed to achieve in over four years.
The AFR has more.
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