Dick Smith receivers eye Asian buyers

Ferrier Hodgson have reportedly received more than 50 expressions of interest from potential buyers for the Dick Smith chain, which owes roughly A$390 million to creditors. Photo / John Stone.
Ferrier Hodgson have reportedly received more than 50 expressions of interest from potential buyers for the Dick Smith chain, which owes roughly A$390 million to creditors. Photo / John Stone.

Dick Smith's receivers are eyeing potential Asian buyers for the embattled electronics business.

Ferrier Hodgson, which took control of the transtasman retailer on January 5, has advertised the chain's sale in major newspapers across the region such as the Asian Wall Street Journal.

It follows a marketing campaign in Australasia, which included advertisements appearing in the New Zealand Herald.

The Sydney Morning Herald said the receivers were aiming to lure major Asian consumer electronics retailers such as Gome, Yamada and Suning, as well as electronics suppliers looking to secure a retail footprint in Australia.

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"We don't want to leave any stone unturned," Ferrier Hodgson retail partner James Stewart told the newspaper.

"Most of the world's consumer electronics retailers are supplied through Asian markets. We want to make sure we give everyone an opportunity."

Ferrier Hodgson have reportedly received more than 50 expressions of interest from potential buyers for the chain, which owes roughly A$390 million to creditors.

There has been speculation that the New Zealand arm of the business, which operates 62 Dick Smith stores, could be sold separately.

Dick Smith operates 393 outlets including those operated under its Move sub-brand in Australia.

The receivership came 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.

- NZ Herald

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