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EXCLUSIVE: David Jones To Get Back Into CE Looking For Buyer

David Jones is looking to get back into the consumer electronics and audio market, following a disastrous relationship with Dick Smith who was placed into liquidation with debts of over $400M.

ChannelNews understands that the retailer who is set to move their head office from Sydney to Melbourne is currently looking for a senior consumer electronics buyer.

We have been told that a former Dick Smith buyer is currently in discussions with the mass retailer.
Back in 2014 Dick Smith negotiated a deal to take floor space in key David Jones stores.

Dick Smith Receivers Ferrier Hodgson announced early last year 2016, that 27 concession stores located in David Jones stores which at the time were known as David Jones Electronics Powered by Dick Smith would be closed following the collapse of Dick Smith.

In a statement at the time receivers of the Dick Smith operation said the closure would affect 181 jobs, mostly part-time and casual.
“The relationship between Dick Smith and David Jones effectively came to an end on Wednesday, 27 January 2016, with the terms of the termination having been mutually agreed between the parties.

ChannelNews understands that the Dick Smith stores were unprofitable.

The initatives led by former CEO Nick Aboud who is now facing legal action in the Supreme Court following the $400M collapse of Dick Smith was labelled a “disaster” by former David Jones management.

Prior to the Dick Smith exercise David Jones was selling premium branded sound systems from the likes of Bose and Yamaha. They also stocked Sony, Panasonic and Samsung TV’s along with a range of premium TV’s.

The predominantly fashion retailer has also been highly successful selling small appliances and white goods in the past.

This week David Jones will launch its new-look two-level Macarthur Square store following a massive $240 million refurbishment.

The new consumer electronics buying group will be based in Melbourne after David Jones announced that they were relocating all their head office operations to Victoria.

What is not known is what percentage of the Sydney based, David Jones buying staff have agreed to move to Victoria. Some insiders claim “very few”.

The department chain has a 178 year history in Sydney the new buyers will operate from a purpose built headquarters in Richmond, Melbourne, following its $2.1 billion takeover by South African retail group Woolworths Holdings.

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