Thousands of Australians to lose jobs as Dick Smith closes all stores

Almost 3,000 people are set to lose their jobs after electronics retailer Dick Smith shutters its stores in Australia and New Zealand.

In early January, it was announced the chain would be going into voluntary administration after months of serious financial trouble. At that point, the company said it would look for potential purchasers and existing employees hoped they would be able to keep their jobs.

On Thursday, Ferrier Hodgson, the company that has been managing Dick Smith's receivership process, announced in a statement (PDF) that no acceptable offers of purchase had emerged. As a result, approximately 2,460 staff will lose their jobs in Australia and 430 in New Zealand. The remaining 363 stores will shut their doors in a process expected to take eight weeks.

"We would particularly like to thank the Dick Smith employees for their support and patience during the receivership process," receiver James Stewart said.

According to Business Insider, a fire sale will take place at Dick Smith stores on Friday 26th.

The company was founded by entrepreneur Dick Smith in 1968, before the majority of the company was sold to Woolworths in 1981. In 2012, following dozens of store closures in the years prior, Anchorage Capital acquired the Dick Smith brand. In 2013, the company went public on the Australian Securities Exchange, but Anchorage had sold its entire stake by the following year. 

By January, 2016, the company's share price tumbled 80% from its initial value, before trading was halted and Dick Smith was placed into receivership. 

Australians were understandably annoyed after finding out their gift cards and deposits would not be honoured in-store as the company went under. But with these job losses, it looks like the end of Dick Smith is set to get a whole lot worse.

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