Creditors to gather to hear Dick Smith news

The meeting will decide whether or not a creditors' committee should be appointed and whether or not the administrators should be replaced.
The meeting will decide whether or not a creditors' committee should be appointed and whether or not the administrators should be replaced.

The administrators appointed to embattled electronics retailer Dick Smith will host a creditors meeting in Auckland.

A lending syndicate led by HSBC and National Australia Bank appointed receivers Ferrier Hodgson to the struggling electronics seller on Tuesday.

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The receivership comes after the retailer abandoned its profit forecast last month amid a sales slump that left the firm with high levels of excess stock, which had to be heavily discounted in the lead-up to Christmas.

Prices were slashed by up to 80 per cent in the fire sale, but it failed to have the desired effect.

Dick Smith - which operates 393 stores, 62 of them in New Zealand, and has 3300 employees - has itself appointed McGrathNicol as voluntary administrator.

The administrators have today said that they will host a creditors' meeting at the Pullman hotel on January 15 at 10 a.m. That meeting will decide whether or not a creditors' committee should be appointed and whether or not the administrators should be replaced.

- NZ Herald

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