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Dick Smith wipes out resellers

Retailer will wind down reseller business, to the disappointment of its resellers

Dick Smith has decided to wind down its reseller business, and will not renew contracts going forward.

Existing contracts will be honoured, but following the expiry of each contract resellers will not be able to trade under the Dick Smith brand. Franchises and Dick Smith retail outlets will not be affected.

Dick Smith spokesperson, Luke Schepan, said the retailer will work with the resellers to ensure a smooth transition, and resellers were being given plenty of notice. The earliest of the contracts would not expire for a year.

“Our business has undergone a strategic review, and the results determined that the reseller business doesn’t align with our strategic plan going forward,” Schepan said.

“We’re trying to give resellers as much time as possible and we’ll be honouring all existing contracts.

“Resellers can still apply to take out a corporate account to continue to sell Dick Smith products – the exception is the resellers will not be able to use the Dick Smith brand.”

However, a NSW-based reseller, who requested not to be named, expressed disappointment in the decision.

“We got the letter a few weeks ago,” the reseller owner said. “It’s just bad luck for us – we invest hundreds of thousands of dollars into the business just to have it taken away from us.”

The announcement follows the decision by Vodafone Hutchison Australia (VHA) to bring all its 208 Vodafone-branded retail outlets in-house in June.