Dick Smith shareholders left out in the cold

Dick Smith shareholders left out in the cold

Company says it is not able to return money to investors

Dick Smith has confirmed what many of its shareholders already expected. The company does not have the money to pay its creditors and therefore, will not return any money to them.

In a letter to shareholders, administrator Joseph Hayes, said that following the initial investigation, it had been determined that there may be sources of recovery available for the benefit of creditors. But the administrators did not think there would be sufficient funds to pay them in full.

As a result, Hayes said, “we have reasonable grounds to believe that there is no likelihood that shareholders of DSHE will receive any distribution in the course of the external administration of the Dick Smith Group.”

The company did not disclose what the shortfall was between the amount owed and what the company was able to pay.

Dick Smith shut its doors for the last time on May 3. Shortly after online retailer Kogan, bought the company’s online business and relaunched the brand.

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