This is disgraceful conduct.

Are we being treated like human beings by our Corporate Captains? Have they heard of the word 'compassion' or is greed the guiding light for them?

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Trishia
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Location: Melbourne, Victoria.

This is disgraceful conduct.

Post by Trishia » 05 Jan 2016, 14:15

Disgraceful conduct from a well known brand name, who people have come to trust.
I hope none of you got ripped off!
Dick Smith whose name has been "Trashed" will be angry.

https://news.google.com.au/?ar=1451962892

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Buck_naked
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Re: This is disgraceful conduct.

Post by Buck_naked » 05 Jan 2016, 15:46

i used to shop there a lot. a lot cheaper than harvey norman.
:teary :teary :teary

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Dreamweaver
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Re: This is disgraceful conduct.

Post by Dreamweaver » 06 Jan 2016, 09:20

Dick Smith: What went wrong?
Private equity group Anchorage Capital bought Dick Smith from Woolworths in 2012 for an initial payment of just $20m.

Anchorage then "dressed the company up to look good for just one thing - to persuade people to buy shares," according to analysts from Forager Funds Management.

Anchorage "wrote down the value of the inventory, took provisions for future onerous lease payments, wrote down the value of the plant and equipment and liquidated a lot of the inventory as quickly as they possibly could to throw off cash," according to Forager's Steve Johnson.

The cash was then used by Anchorage to effectively make Dick Smith 'buy itself'.

The writedowns inflated profits, a key factor in enticing investors into the company.

For example: a stock item that may have been bought for $100 may have been in the books at $60 after the writedowns, which meant an extra $40 profit on every sale.

The writedown of plant and equipment lowered depreciation charges, also boosting the bottom line.

"But when they liquidated all that inventory to pay for the purchase price, they didn't replace it," according to Forager's Steve Johnson.

"And the new owners of the business, since it's been listed on the stock market, have had to put in a lot more money to fund the increase in inventory."
http://www.abc.net.au/news/2016-01-06/d ... on/7069604

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Buck_naked
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Re: This is disgraceful conduct.

Post by Buck_naked » 06 Jan 2016, 10:32

it is a tough business with competitors like JB hi fi and many others.
Plus a lot of small gadgets can be purchased online at low prices, GST free, from over seas

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terra
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Location: South-Eastern foothills of Mt. Gingenbullen, Southern Highlands NSW

Re: This is disgraceful conduct.

Post by terra » 07 Jan 2016, 12:38

I will miss Dick Smith stores despite their poor management.

My next best alternative is "Officeworks" ! .... they have a good range of electrical gizmo stuff and great prices as well.

http://www.officeworks.com.au/
"Life's too short to drink cheap wine".

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kfchugo
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Location: Lake Macquarie NSW

Re: This is disgraceful conduct.

Post by kfchugo » 07 Jan 2016, 13:37

I am perturbed that the media insist on referring to these stores as "Dick Smith" - admittedly, the name of the business, but Dick himself has not been associated with the venture for a good many years. I can only imagine what Dick, himself is thinking about all this!

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Buck_naked
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Re: This is disgraceful conduct.

Post by Buck_naked » 07 Jan 2016, 14:35

when dick smith sold (to woolworths) it was the 'goodwill' of his name that made the business valuable.
he sold it lock stock and name as well.
and he was a bit of a human headline with his adventures and 'australian geographic', etc.
his name sort of stayed in the headlines a bit like richard branson
I guess they sort of hoped the 'dick smith' man would add some shine to 'dick smith' the store
If his name had been 'Ivan Milat' it would have been dumped years ago.

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godfather
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Re: This is disgraceful conduct.

Post by godfather » 07 Jan 2016, 21:19

Dick Smith faced the cameras a few days ago and tried to explain the whole situation.
Most people knew that DS was/is not involved with the company at all.
Think he didn't look too far ahead when he sold the joint and NAME!

:eek :eek :eek
The devil whispered, “You cannot withstand the storm“ and I replied: “I am the storm!”.....Unknown.

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Biggdad
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Re: This is disgraceful conduct.

Post by Biggdad » 08 Jan 2016, 19:12

terra wrote:I will miss Dick Smith stores despite their poor management.

My next best alternative is "Officeworks" ! .... they have a good range of electrical gizmo stuff and great prices as well.

http://www.officeworks.com.au/
Terra; If you don't mind waiting a few weeks after ordering try this site. I just bought two of these! Click below!

http://www.aliexpress.com/item/Brand-Ne ... 18400_6150
WHEN YOU TELL THE TRUTH, IT'S LESS YOU HAVE TO REMEMBER.Image

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Tedwalker
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Re: This is disgraceful conduct.

Post by Tedwalker » 13 Jan 2016, 11:22

This conduct of Anchorage, while deplorable, is not new.
It mirrors that of Gordon Gecko in the film "Wall Street".
The biggest worry is for the 3200 staff.

:eek :eek

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grandduke
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Re: This is disgraceful conduct.

Post by grandduke » 13 Jan 2016, 15:18

Surely Anchorages conduct is fraudulent by not
advising the buyer its true state.
“You see things; and you say, ‘Why?’ But I dream things that never were; and I say, ‘Why not?’”
George Bernard Shaw

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