DSH - DSHE Holdings

[CanOz]

Re: DSH - Dick Smith Holdings

yeah management got a lot on their shoulders

I went in to store when they announced big sale as after a new phone, it was just junk they trying to sell, nothing of substance

went to officeworks

Sounds like it was just a liquidation sale, but it was not advertised that way, was it?

 

[notting]

Re: DSH - Dick Smith Holdings

I've been doing the rounds again. JB is Pumping, Harvey is trying but still too overpriced and they screwed up my fridge delivery so I got a refund. Went into poor Dick. The staff looked happy enough but when I started talking about how it had got into administration. The guy looked pretty heart broken. Poor thing. I asked if his store was profitable cause if it was he'd probably be OK but he said he couldn't comment.
It was one of the better Dick stores I know of.
I do most of my shopping online these stores are just so far from competitive apart from the deal when they are culling a TV line or something to make way for a new thing. There is even a Kogan store with pretty good deals, Checked them out - amazing.

 

[CanOz]

Re: DSH - Dick Smith Holdings

I've been doing the rounds again. JB is Pumping, Harvey is trying but still too overpriced and they screwed up my fridge delivery so I got a refund. Went into poor Dick. The staff looked happy enough but when I started talking about how it had got into administration. The guy looked pretty heart broken. Poor thing. I asked if his store was profitable cause if it was he'd probably be OK but he said he couldn't comment.
It was one of the better Dick stores I know of.
I do so most of my shopping online these stores are just so far from competitive apart from the deal when they are culling a TV line or something to make way for a new thing. There is even a Kogan store with pretty good deals, Checked them out - amazing.

Makes you wonder what all the shop fronts are going to look like as more and more people shop online. This is one of the great disruptors of our time i reckon. A slow bleed to death for retailers. I guess w could have more restaurants, bars and cafes...

 

[notting]

Re: DSH - Dick Smith Holdings

Sounds like it was just a liquidation sale, but it was not advertised that way, was it?

Seriously there was nothing worth buying. It had all been lifted by the staff. They probably selling it on Ebay.

 

[notting]

Re: DSH - Dick Smith Holdings

Makes you wonder what all the shop fronts are going to look like as more and more people shop online. This is one of the great disruptors of our time i reckon. A slow bleed to death for retailers. I guess w could have more restaurants, bars and cafes...

Yeah there's a lot a cool coffee shops and innovative eateries opening up which is for us all, I guess whilst the robots do all the work!

 

[Bill M]

Re: DSH - Dick Smith Holdings

The only thing the online retailers need to get right is the warranty of the product. Sometimes those grey imports do not get covered by warranty. Imagine buying a Samsung S6 for $900 and then when it breaks down and you take it to Samsung and they say sorry, this is an online product from a grey import company and we can not service that unit. I've heard of it happening.

I play the other game, print it out or screen shot the item off another companies website on my smartphone and ask the bricks and mortar mobs if they can match it. 9 times out of 10 they do, the other one time I take the risk. On my last recent buy at Harvey Norman they matched everything I threw at them, they had to really as I was buying a high end PC and they new I would walk if they didn't.

The good thing with the shops is when you go back there with your item and it's covered under warranty they will take care of you without too much fuss.

Sorry, it's a bit off topic but that's what retailers and online suppliers are up against. I love my toys....

 

[Smurf1976]

Re: DSH - Dick Smith Holdings

I am working their myself - I'm hoping my pay won't get halted!

Sorry to hear that and I hope it works out OK for you in due course.

I've read that whatever happens from once the administrators take over is their responsibility. So you should get paid for today and ongoing work for however long that lasts.

As for any work you have done prior to yesterday but not yet been paid for, that's more questionable. Leave entitlements etc would be even more doubtful (and quite possibly end up worthless if the company does go bust).

I'm not wanting to be negative there on something that affects you personally, just suggesting the old "plan for the worst, hope for the best" approach would be wise.

 

[nulla nulla]

Re: DSH - Dick Smith Holdings

Sorry to hear that and I hope it works out OK for you in due course.

I've read that whatever happens from once the administrators take over is their responsibility. So you should get paid for today and ongoing work for however long that lasts.

As for any work you have done prior to yesterday but not yet been paid for, that's more questionable. Leave entitlements etc would be even more doubtful (and quite possibly end up worthless if the company does go bust).

I'm not wanting to be negative there on something that affects you personally, just suggesting the old "plan for the worst, hope for the best" approach would be wise.

Employees are a preference creditor. The Administrator/liquidator will determine from the payroll records who is entitled to what and organize a payment via "gears". If there is a shortfall from available company funds, the government guarantees the employee payout and then stands in the administration for the extent of the guaranteed funds. If you are an employee, you should make the effort to attend any meetings called by the administrator/liquidator. Keep the pressure on them to pay you out in a timely manner.

 

[banco]

Re: DSH - Dick Smith Holdings

Wonder how long this will stay up for:

http://www.anchoragecapital.com.au/case-study-dick-smith

 

[luutzu]

Re: DSH - Dick Smith Holdings

Wonder how long this will stay up for:

http://www.anchoragecapital.com.au/case-study-dick-smith

woah! Bought for $20M, offload to mums and dads and sophisticated fund managers two years later for $520M and still own 20% until chasing out a year before total collapse. Fark.

 

[Tom32]

Re: DSH - Dick Smith Holdings

Wonder how long this will stay up for:

http://www.anchoragecapital.com.au/case-study-dick-smith

Apparently (at inventory management) it was the clearing of old and obsolete stock at written down stock values that increased their PE ratio. They only describe the former not the latter obviously.

Because our entire accounting system / law is geared around preventing writing down profits inflating profits In the short term by saying stock write down all obsolete and selling for big margins against written down value isn't going to fall foul of the Aus gov. After all apart from the private equity outfit the o let other winner was the ato in the year they deliberately wrote up their profits. Though prob they didn't even win because it would have been written back in the year before which formed their turnaround story.

 

[waterbottle]

Re: DSH - Dick Smith Holdings

Thanks for the support everyone!

I will be okay, but many of my colleagues won't be having been caught off-guard immediately after the Christmas/New Year's period.

Seems as though we were having problems for a while with suppliers refusing to provide new stock since early Dec - all we received were DSH branded products and the odd name-brand (probably old stock from distribution).
The goal is to apparently sell the business but it's not clear who would be the buyer (if any?).
My guess would be JBH or HVN, having said that our competitors are usually located in the same markets as we are so unless they are looking for excess crappy stock and more floor space I can't see why they would bother!

 

[oldblue]

Re: DSH - Dick Smith Holdings

Perhaps if the price is cheap enough a competitor might buy, take the good bits and close the rest down. A sort of preventative strike against anyone making a new, viable competitor.

 

[pinkboy]

Re: DSH - Dick Smith Holdings

Perhaps if the price is cheap enough a competitor might buy, take the good bits and close the rest down. A sort of preventative strike against anyone making a new, viable competitor.

Perhaps Anchorage might take it on again?


pinkboy

 

[Smurf1976]

Re: DSH - Dick Smith Holdings

Went into a Dick Smith store today for the first time in years.

Spotted that they still had Christmas lights on sale so took a look (already got 25,000 so may as well have some more).

Couldn't believe the prices they were asking! $80 on the 7th of January for what others would have had for $60 in December and would have dropped to no more than $45 on Boxing Day to clear unsold stock.

Now I know why they're struggling to get people buying things. Charging full price, and a rather high price at that, for stock that is now out of season and won't likely find a buyer until November (if they're still around at that point).

 

[Macquack]

Re: DSH - Dick Smith Holdings

Dick Smith customers left out of pocket on undelivered goods, lost deposits and gift cards

Dick Smith (the founder) has issued a spray at the private equity firm that floated the electronics store he founded, which is now in voluntary administration.

The outspoken entrepreneur said the previous owner, Anchorage Capital Partners, had “a lot of explaining to do” over its $520 million IPO, which he argued was drastically overvalued.

And he called on those who benefited to step up and guarantee customers the money they are owed for deposits, gift cards and undelivered goods.

“They most certainly should be refunded,” Mr Smith told news.com.au. “Some of the people who made a fortune out of the recent float, they should pay back those people who’ve put down deposits.

“The company could not possibly afford to be that indebted, or have that value on the market.”

You are dead right Dick Smith, these capitalist pigs (Anchorage Capital) should be hung drawn and quartered. Not only did they fraudulently alter the books of Dick Smith Electronics to dress up a piece of mutton to appear as lamb, and swindle shareholders out of a cool $500 million. But, they are now also responsible for duding the customers out of their gift card moneys, deposits on products and undelivered (never to be delivered) items.

http://www.news.com.au/finance/busi...s/news-story/9ac8c747337216347be7e81e24b90155

Dick Smith is the Greatest Private Equity Heist of All Time
https://foragerfunds.com/bristlemouth/dick-smith-is-the-greatest-private-equity-heist-of-all-time/

 

[skc]

Re: DSH - Dick Smith Holdings

Not only did they fraudulently alter the books of Dick Smith Electronics to dress up a piece of mutton to appear as lamb

Yes they dressed it up. No, not fraudulently.

, and swindle shareholders out of a cool $500 million.

No. Anchorage made a lot of money for it's own shareholders. Investors buying into DSH failed to do their own research properly. It's a zero sum game.

But, they are now also responsible for duding the customers out of their gift card moneys, deposits on products and undelivered (never to be delivered) items.

Not really. They are probably just acting in accordance to the Corporation Act in relation to the administration process.

 

[luutzu]

Re: DSH - Dick Smith Holdings

Dick Smith customers left out of pocket on undelivered goods, lost deposits and gift cards



You are dead right Dick Smith, these capitalist pigs (Anchorage Capital) should be hung drawn and quartered. Not only did they fraudulently alter the books of Dick Smith Electronics to dress up a piece of mutton to appear as lamb, and swindle shareholders out of a cool $500 million. But, they are now also responsible for duding the customers out of their gift card moneys, deposits on products and undelivered (never to be delivered) items.

http://www.news.com.au/finance/busi...s/news-story/9ac8c747337216347be7e81e24b90155

Dick Smith is the Greatest Private Equity Heist of All Time
https://foragerfunds.com/bristlemouth/dick-smith-is-the-greatest-private-equity-heist-of-all-time/

I bet you there's a few who's calling up Anchorage since to ask them to invest their money for them.

 

[Parse]

Re: DSH - Dick Smith Holdings

What happens with the short sellers? I imagine DSH had a fair bit of short trading going on, so do these guys now just walk away laughing all the way to the bank with a 100% profit? Considering the shares now will never be returned and if they were, they are worthless anyway.

 

[skc]

Re: DSH - Dick Smith Holdings

What happens with the short sellers? I imagine DSH had a fair bit of short trading going on, so do these guys now just walk away laughing all the way to the bank with a 100% profit? Considering the shares now will never be returned and if they were, they are worthless anyway.

If and when the administrator declares that DSH equity to be worthless, the short holders will be able to close their position with an exit price of $0.

However, this process could take some time, so some short holders might choose to cover their shorts if they think the end is nigh. It's better to lock in 90% profit and release the capital, then to be locked up for 12 months chasing that last 10%. I suspect this is why you sometimes see an incredible, unexplained and high volume jump in the share price of a company very shortly before it's death.