Receivers look to Asia for Dick Smith buyer
Expressions of interest deadline closes tomorrow.
Receivers of bust electronics retailer Dick Smith will be sifting through more than 50 potential buyers after the deadline for expressions of interest closes tomorrow.
Although the range of interest includes parties keen on just the New Zealand business or the company’s property leases, receivers from Ferrier Hodgson are said to favour a single buyer for the group as a going concern, with Asian corporates a particular target.
The Australian Financial Review has reported Ferrier Hodgson placed advertisements in several Asian newspapers, including the Asian Wall St Journal, seeking interest in Dick Smith.
Ferrier Hodgson’s James Stewart told the AFR that most of the world’s electronics retailers were supplied through Asia and the Dick Smith sale was an ideal opportunity for an Asian retailer to establish a presence in Australia.
Receivers have said the sale process is expected to continue well into February.
This week they sought court approval to push the date of the second Australian creditors’ meeting out to August 2.
Dick Smith, which had 393 stores across Australia and New Zealand, ran into trouble last year and appointed administrators McGrathNicol on January 5. On the same day, a syndicate of lenders to Dick Smith appointed receivers.
Secured creditors were owed $A140 million at the time of receivership, while unsecured creditors were owed $250 million.
Dick Smith began borrowing from a bank syndicate of National Australia Bank, Bank of New Zealand and HSBC on June 22 last year.
At its last balance date on June 28 it had drawn $A70.5m of the $A135m facilities.
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Staff reporter
Tue, 26 Jan 2016
Tue, 26 Jan 2016
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Receivers look to Asia for Dick Smith buyer
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