Electronics retailer Dick Smith is to close after the receiver failed to find a buyer for the company.
Dick Smith Photo: WikiCommons
The retailer, which has more than 400 stores in Australia and New Zealand, had been struggling with too much stock and falling demand, when the banks pulled the plug on its financing arrangements earlier this year.
Dick Smith has 62 stores New Zealand, which are expected to close over the next 8 weeks.
The closure will affect about 430 staff in New Zealand, who are entitled to redundancy payouts of up to $22,160.
The entitlements of those who are made redundant will have preferential treatment over other secured creditors.
In a statement to the Australian Securities Exchange, receivers Ferrier Hodgson said it was a disappointing outcome.
"While we received a significant number of expressions of interest from local and overseas parties, unfortunately the sale process has not resulted in any acceptable offers for the group as a whole or for Australia or New Zealand as standalone businesses," receiver James Stewart said.
"The offers were either significantly below liquidation values or highly conditional or both."
There was some interest from local and overseas buyers for the stores, but none of their offers convinced the receivers to sell.
