DICK SMITH GROUP

Dick Smith operated consumer electronics retail stores throughout Australia and New Zealand, from over 390 locations and with more than 3,000 employees. The company engaged in a major expansion after a public listing in 2013, and reported significant profits thereafter. However, inventory write downs in 2015, and cash pressures resulted in the appointment of Administrators in early 2016.

The Administrators:

• Managed the initial creditor communications and meeting issues associated with a high-profile appointment;
• Managed of a significant group of corporate stakeholders with an interest in the appointment;
• Worked with the Receivers to ensure a stable environment for the management and marketing of the business;
• Undertook a significant scale investigation into the reasons for the failure of the business, including a major review of inventory purchases and rebates;
• Prepared a detailed report to creditors;
• Undertook a major solvency review for the purposes of pursuing antecedent transactions;
• Worked with the receivers in relation to the making of claims by Dick Smith and its Lenders;
• Worked with the insurers and other parties in relation to the defence of shareholders claims made against the group.

The matter is subject to significant ongoing work around asset recovery and litigation.