Consumer electronics retailer, Dick Smith (ASX:DSH), will be closing down 27 of its stores and terminating the employment of 181 employees, according to receivers and Managers to Dick Smith Holdings and associated entities, Ferrier Hodgson.
The announcement follows recent news that the company appointed James Stuart, Ryan Eagle and Jim Sarantinos from Ferrier Hodgson as receivers on January 5.
“Twenty-seven David Jones Electronics Powered by Dick Smith concession stores, contained within David Jones department stores across Australia, will close,” Ferrier Hodgson said, in a statement on the ASX.
It added that the receivers have been undertaking an ongoing review of the operations of the group, with the decision enabling it to have a view to maintain stable operations in order to facilitate its sale as an ongoing concern.
“As a result of this review, the receivers have determined that they will no longer continue to operate the 27 David Jones Electronics Powered by Dick Smith concession stores, contained within David Jones department stores,” it added.
In addition, it determined that the relationship between Dick Smith and David Jones will come to an end effective from close of business on January 27, with the terms of the termination having been mutually agreed between the parties.
The closure of the 27 stores also means the employment of 181 employees will be affected. Ferrier Hodgson claimed this includes two full-time employees, 78 part-time employees, and 101 casual employees.
“Dick Smith is working to identify opportunities for future employment for as many of the affected staff as possible through the Dick Smith network.
“The receivers advised that the closure of the concessions is a necessary step in the restructuring to assist in ensuring the commercial viability of the Dick Smith group businesses,” it added.