Dick Smith Holdings Limited
(ASX:DSH) has entered voluntary administration as below expectation sales and cash generation in December compound Q2 2016 trends.
The company said it had explored alternate funding, but any success in obtaining alternative funding would not have provided sufficient time to support short-term funding requirements and allow the retailer to order required inventory in the next four to six weeks.
Dick Smith said that while it is confident of the long-term viability of the company, the directors have been unsuccessful in obtaining the necessary support of its banking syndicate, without which there is no option other than to appoint a voluntary administrator.
The electronics retailer said it believes this action is the best way to protect the interests of shareholders, creditors, employees, suppliers and other stakeholders.
Dick Smith recorded a net profit of $37.9 million at 30 June 2015.
