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Administrators for retailer Dick Smith launch ad campaign to try and sell-off embattled brand

Dick smith for saleAdministrators for embattled electronics retailer Dick Smith have launched the ultimate advertising campaign seeking buyers for the brand itself, marketing it as an “Iconic Electronics Retailer”.

The ad campaign comes the same day that CEO Nick Abboud tendered his resignation effective immediately, with retail specialist Don Grover, who has worked with Dymocks, Retail Fusion Brands and David Jones, taking over the role.

Administrators Ferrier Hodgson launched the campaign to sell the business in The Australian and The Australian Financial Review today, offering all the assets of the 332 Australian and 62 New Zealand stores.

The ad comes complete with a QR code leading potential buyers to a dedicated website promoting the sale.

“These advertisements come on the back of over 40 initial expressions of interest from various parties prior to the commencement of the advertising campaign,” Ferrier Hodgson said in a statement.

Dick Smith continues to battle against a consumer backlash over Ferrier Hodgson’s decision not to honour thousands of gift cards sold in the lead up to Christmas or refund deposits and the brand is now struggling for survival.

Major supermarkets Coles and Woolworths have offered to honour gift cards sold in their stores, while the Federal Government is entertaining the possibility of legislation protecting the rights of people who purchase gift cards from businesses that go bust.

The gift card holders are listed among the unsecured creditors of the business.

“Creditors for the Dick Smith business include secured creditors that are owed approximately $140m and unsecured creditors owed approximately $250m,” the statement said.

Simon Canning

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