***UPDATE 06/01/16 – Dick Smith has gone up for sale
It’s the end of the road, or rather the start of the end for Dick Smith. The past giant retailer who found his niche in custom electronics is now fallen to an ever-expanding expanse of consumer electronics industry, unable to keep up in price wars and variety it seems that Dick Smith is going into voluntary administration.
Dick Smith has appointed McGrath Nicol as voluntary administrators, trading has come to a halt at 36 cents, compared to floating at $2.20 in 2013. However, a bigger blow is to customers, as the company has said it will not honor outstanding gift vouchers or refund deposit paid for any goods. They have however said they will continue paying their 3300 employees but for how long?
A bid to get financial aid for Dick Smith has been unsuccessful. On the other hand, ASX hasn’t fared any better, dropping 1% less on opening after Dow Jones slumping 2.6% which was affected by the Chinese markets 7% drop, the pain is trickling down.
Dick Smiths Executives have been quoted as saying they don’t know what caused the financial strive that they are in now, from my point of view it seems they haven’t been getting the right information, the right reports to oversee the financial side of the business. Obviously, the failure can be attributed to the accounting system lacking.
We know from experience things like this are predictable a slide in the right report can tell you where you are going, and potentially how you can escape in fact it would at least let you prepare and instead of putting out fires you would stop the sparks from starting the fire.
Don’t get caught out give AlphaBiz Solutions a call and make sure you don’t go the same way as Dick Smith with the right system and the right clear and concise information you will be able to navigate your business to success.