THE Dick Smith brand has been thrown a lifeline after Kogan.com acquired the embattled retailer's online business in an undisclosed deal.
The Melbourne-based e-commerce retailer will operate Dick Smith as an online-only consumer electronics retailer, following the closure of its bricks and mortar network later this year.
Kogan.com founder and CEO Ruslan Kogan says he will invest in building the platform to ensure the legacy of the long-running business lives on.
"Dick Smith is an iconic Australian brand and we're thrilled to be able to keep it alive, as well as Aussie-owned and run," Kogan says.
"I remember as a kid always visiting Dick Smith to look for parts to upgrade my computer. There is a strong history of passion in the Dick Smith community for how technology can improve our lives, and we look forward to helping make it more affordable and accessible for all."
The Kogan business has become a dominant player in the online space since launching in 2006 with a strategy that cuts out middle men and delivers goods straight to the consumer.
The company has also expanded into the leisure market with Kogan Travel and household goods with Kogan Pantry.
The receiver to Dick Smith Holdings (ASX:DSH), James Stewart of Ferrier Hodgson, says the new owner is well equipped to resurrect the brand online.
"After a thorough process with multiple bidding parties we are pleased that Kogan.com is the successful acquirer of the Dick Smith online business," Stewart says.
"As Australia's largest pureplay online retail website, Kogan.com is a natural and logical owner of the Dick Smith online business and we are particularly pleased that the Dick Smith brand will continue under its stewardship."
All Dick Smith customers will be contacted with the option of having their details removed before the transfer, under privacy laws.
Customers who provided their information to Dick Smith after the appointment of receivers will not have that information shared to Kogan.com.
Dick Smith was placed into voluntary administration in January with debts of $390 million. Store closures across 301 locations in Australia and 62 in New Zealand are expected to impact almost 3000 staff members.
The brand's four 'fashtronics' outlets, known as Move, at Sydney Airport closed earlier this month after failing to secure a buyer.
Kogan.com will operate the Dick Smith website in Australia and New Zealand from June 1.
Get our daily business news
Sign up to our free email news updates.
Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support