DICK SMITH'S 'MOVE' STORES HIT WALL AT AIRPORT

DICK SMITH'S 'MOVE' STORES HIT WALL AT AIRPORT

DICK Smith Limited's (ASX:DSH) four Sydney Airport concept stores, known as Move, will close today after negotiations by receivers failed to secure a buyer.

The so-called 'fashtronics' stores were established by Dick Smith last year in partnership with global duty free group Gebr. Heinemann.

Plans were in place to open seven stores at Sydney Airport and expand the business concept internationally, with the stores targeting trend-driven youth with a focus on consumer electronics travel products and accessories.

However, a week after receiver James Stewart, of Ferrier Hodgson, announced plans to close all Dick Smith electronics stores after failing to secure a suitable offer for the group, he has announced the same fate for the Move stores.

"Unfortunately, we have been unable to reach agreement to sell the Move airport assets and have no option but to close the stores located at Sydney International Airport effective from today," says Stewart.

There are four Move stores located at both international and domestic terminals in Sydney and the closure will result in the loss of 48 jobs, which includes part-time and casual positions.

Stewart says that, where possible, employees will be offered positions within the remaining Dick Smith store network ahead of its planned closure in April.

"They will also be offered appropriate outplacement support," he says.

Stewart has given assurances that all employee entitlements are to be paid in full, reflecting a similar statement last week following news of the planned closure of all Dick Smith stores.

The collapse of the 40-year-old Dick Smith group will result in the loss of 2900 jobs in Australia and New Zealand, although Brisbane-based Flight Centre (ASX:FLT) last week extended a hand to Dick Smith employees looking for a move into the travel industry.

Flight Centre says it will offer former Dick Smith employees the chance to be fast-tracked to the end stage of Flight Centre's recruitment process.

Dick Smith was placed into voluntary administration in January with debts of $390 million. It came a little over two years after private equity group Anchorage Capital Partners floated the company on the ASX for $520 million.

Investigations by the receivers have uncovered inconsistencies in payments to employees, with estimates that they were short-changed about $2 million over the past six years in holiday pay and leave loading entitlements.

Enjoyed this article?

Don't miss out on the knowledge and insights to be gained from our daily news and features.

Subscribe today to unlock unlimited access to in-depth business coverage, expert analysis, and exclusive content across all devices.

Support independent journalism and stay informed with stories that matter to you.

Subscribe now and get 50% off your first year!

Four time-saving tips for automating your investment portfolio
Partner Content
In today's fast-paced investment landscape, time is a valuable commodity. Fortunately, w...
Etoro
Advertisement

Related Stories

Luxury fashion seller Azura hits profitability as AI plugs data gaps

Luxury fashion seller Azura hits profitability as AI plugs data gaps

An artificial intelligence (AI) overhaul has allowed Azura Fashion ...

“Not our desired outcome”: Telix withdraws from $300m Nasdaq IPO

“Not our desired outcome”: Telix withdraws from $300m Nasdaq IPO

Telix Pharmaceuticals (ASX: TLX), one of the nation’s largest...

CommBank joins new ‘intelligence loop’ to combat SMS phishing scams

CommBank joins new ‘intelligence loop’ to combat SMS phishing scams

In an effort to reduce the number of SMS phishing scam victims...

Stralis Aircraft secures funding to make commercial hydrogen planes a reality

Stralis Aircraft secures funding to make commercial hydrogen planes a reality

Brisbane-based Stralis Aircraft has become one step closer to its a...