Troubled electronics retailer Dick Smith is set to make a major announcement concerning their future.
Earlier today shares in the consumer electronics retailer were suspended pending the announcement which is tipped to be announced on Wednesday.
In recent weeks several major Companies have placed Dick Smith on credit hold. Some suppliers have told ChannelNews that they have not been paid for goods already supplied to the mass retailer whose shares have slumped from $2.10 this time last year to $35 cents in the same period this year.
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| Under Pressure Dick Smith CEO Nick Aboud. |
Just before Christmas Dick Smith management were hawking around $12M worth of house brand stock to distributors and other retailers, the stock is believed to have been purchased for $2M by a national retailer.
ChannelNews has also been told that the Company has spent the past month talking to banks and finance providers in an effort to restructure their debt position. We have also been told that sales are “substantially” less than what the Company initially forecast for the peak Xmas, New Year period.
The company expects to make an announcement about its funding position and debt financing covenants by Wednesday.
Dick Smith shares have plunged in recent months after it issued two profit warnings following disappointing sales in October and November.
