Dick Smith administrators are meeting today with those owed money by the insolvent retail chain for the first time. Dick Smith owes secured creditors about $140 million and unsecured creditors, which includes customers with unredeemed gift cards, another $250 million. Its biggest creditors include Westfield owner Scentre Group and Vicinity Centres. With regard to its IT creditors, mainstream brands will be out the equation as they receive cash-on-delivery as opposed to less popular brands and un
branded products. It is rumoured that Synnex Australia is owed over $200 million.
Others on the list of IT creditors, including Ingram Micro Australia, have been impacted by lack of payment but also because they transact in an industry characterised by low margins.
Unsecured creditors like those that did transactions with Dick Smith via Trade Me since December 2014 are expressing their indignation at non-delivery of paid for products clouded by silence on social media.
Trade Me head of trust and safety Jon Duffy said that as soon as the company heard about Dick Smith’s insolvency it terminated Dick Smith trade.
Consumers are also using social media to criticise Dick’s Smith continued attempts at trading despite not honouring prior commitments.
However, as they constitute unsecured creditors, they will have to take second place to secured creditors.
Today’s meeting at 1200 AEDT in Sydney will determine whether to appoint a committee of creditors and, if so, who the committee members will be and whether to continue with McGrathNicol as administrator.
McGrathNicol would not comment on any of the creditor details before the meeting.
The retailer went into receivership just over a week ago with debts of about $390 million and was advertised for sale on Tuesday.
