While shoppers flooded retailers in the lead up to Christmas, one particular chain won’t be having a particularly happy new year.
Dick Smith has little to celebrate as its decline continues with an announcement this morning that it is going into voluntary administration.
The chain’s management said sales in the key December period had failed to meet expectations, following a poor run at the tail end of 2015.
After cutting $60 million from its inventory value in November, the struggling electronics retailer’s directors had hoped to secure funding to restock the company for the next four to six weeks, but were unable to do so.
Now its banks, NAB and HSBC, have appointed a receiver to the company.
Dick Smith claims it is confident of its long-term viability, but Monday saw it halt trade in its shares while it attempts to refinance its debt.
Dick Smith shares plunged 83 per cent during 2015, and 2016 is not looking like it will be any kinder.