Dick Smith : Press Release – Ferrier Hodgson

27 February 2012

ICONIC ELECTRONICS RETAILER DICK SMITH IN RECEIVERSHIP

5 January 2016

Dick Smith Holdings Ltd, ('DSH') one of Australia's largest electrical retailers, was placed in receivership today following the appointment of Voluntary Administrators.

Ferrier Hodgson partners Mr James Stewart, Mr Jim Sarantinos and Mr Ryan Eagle were appointed Receivers and Managers over DSH and a number of associated entities. The appointment was made by a syndicate of lenders which hold security over the group.

Receiver Mr James Stewart said it was too early to clearly identify the primary causes of the company's current financial position and the reasons for its decline other than saying the business had become cash constrained in recent times. He said it would be business as usual while the Receivers look at the restructuring and realisation opportunities for the Group.

"Dick Smith is one of the best known brands associated with consumer electronics in Australia and New Zealand." Mr Stewart said. "We are immediately calling for expressions of interest for a sale of the business as a going concern."

Mr Stewart said that employees will continue to be paid by the Receivers and that it is expected that Australian employee entitlements will be covered under the Fair Entitlements Guarantee (FEG) scheme if the business cannot be sold as a going concern.

Mr Stewart said that the New Zealand business was profitable and expected it would be attractive to potential buyers.

He also stated that due to the financial circumstances of the Group, unfortunately, outstanding gift vouchers cannot be honoured and deposits cannot be refunded. Affected customers will become unsecured creditors of the Group.

DSH operates 393 stores across Australia and New Zealand under four brands, Dick Smith, Electronics powered by Dick Smith, Move and Move by Dick Smith.

There are 3,300 employees and annual sales of approximately $1.3 billion.

Dick Smith began in 1968 as a car radio installation business in Sydney. In 2012, Woolworths sold the business to Anchorage Capital Partners who then took DSH public in 2013.

Please refer to the following websites for updates throughout the Receivership. http://www.ferrierhodgson.com/

http://www.dicksmith.com.au/

Please direct all media enquiries to:

Felicity Allen

Newgate Communications Pty Limited 03 9611 1800

0413 946 701

felicity.allen@newgatecomms.com.au

Duncan McGauchie

Newgate Communications Pty Limited 03 9611 1800

0417 735 368

duncan.mcgauchie@newgatecomms.com.au

ENDS