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‘Greed’ killed Dick Smith electronics

Dick Smith Grafton store manager Simon Botswain has blamed corporate greed for the downfall of the company, costing around 3000 jobs nation-wide including those at Grafton.
Mr Botswain took to social media last week to publicly slam owner Anchorage Capital, for the “worst incident of greed I have ever been witness to in my life”. He confirmed the Grafton store was among those that would soon close.
The Grafton store manager accused Anchorage of manipulating the value of stock in order to publicly float the company for $512 million, after buying Dick Smith from Woolworths for $95 million two years ago.
“They knew what they were doing from the beginning. This was not an accident, it was planned, they planned to make a lot of money and destroy a company without batting an eyelid,” he said.
The Grafton store manager wasn’t the only one crying foul at the company’s demise.
Creator of the company, Dick Smith, also accused Anchorage Capital of greed and dishonesty.
“For a company that was obviously valued at about $90 million for them to refloat it 15 months later for $500 million … anyone would know you are going to send it into bankruptcy which is what they have done because of their utter greed,” Mr Smith told Sydney Morning Herald.
“I cannot believe this thing is within the law, it doesn’t seem smart to me – it seems unethical.”
Corporate regulator ASIC is understood to be looking into the matter, and there is also a push for a Senate Inquiry.
Forager Funds Management has undertaken a detailed analysis of the downfall of Dick Smith Electronics, which can be accessed at foragerfunds.com/bristlemouth/dick-smith-is-the-greatest-private-equity-heist-of-all-times

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