Electronics retailer Dick Smith Holdings Ltd (ASX: DSH) will close its 363 Australian and New Zealand stores within eight weeks, putting 2,890 staff out of a job.
Receiver Ferrier Hodgson says it has not managed to find a buyer for the troubled retailer, which went into receivership in January with debts of about $400 million.
“While we received a significant number of expressions of interest from local and overseas parties, unfortunately the sale process has not resulted in any acceptable offers for the group as a whole or for Australia or New Zealand as standalone businesses,” receiver James Stewart said.
“The offers were either significantly below liquidation values or highly conditional or both.”
As its closest competitors, it’s expected that JB Hi-Fi Limited (ASX: JBH) and Harvey Norman Holdings Limited (ASX: HVN) will benefit from the demise of Dick Smith. As quoted by The Sydney Morning Herald, analysts from Morgan Stanley believe that both companies could pick up around $200 million in annual sales each as a result.
The chart below shows a clear illustration of what investors think about the future prospects of both companies. Harvey Norman’s share price is up more than 14% in the past three months, while JB HiFi has risen by 17%.
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