In 2013, following private equity firm Anchorage Capital Partners' purchase of the business from Woolworths, Dick Smith ramped up its reliance on controversial supplier rebates under the project outlined in an external review of the company's supply chain.
Giving evidence before the NSW Supreme Court on Tuesday, Anchorage managing director Phillip Cave - who represented the firm on the Dick Smith board until early last year - defended the policy of "maximising" rebates.
The court had previously heard from fellow Anchorage executive Bill Wavish, also a former Dick Smith board member, who admitted to masterminding the rebate strategy with chief executive Nick Abboud and chief financial officer Michael Potts.
"The policy started in Woolworths' time," Mr Cave said. "Woolworths' position was to maximise rebates - it was fully, clearly out there. It didn't start with us. We decided to continue."
The collapse of technology retailer Dick Smith provided a shot in the arm to New Zealand electronics chain Noel Leeming.
Its financial performance was reported on Friday as part of the annual result of its parent company, The Warehouse Group.
Noel Leeming's full-year operating profit rose 87.6 per cent to $12.1 million from $6.4m a year earlier.
Annual revenue at the 75-store chain, which The Warehouse Group acquired for $65m in 2012, rose 13 per cent to $752.1m.
Same store sales jumped 16.7 per cent in fourth quarter of the financial year.
- with news.com.au
