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LATEST IN FINANCE business retail
McGrathNicol releases Dick Smith report
JULY 14, 20162:39PM
Dick Smith in Northland closes for
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Mr Hayes said the failure of Dick Smith represented an unfortunate end for one of Australia’s iconic retailers.
“The collapse was made all the more significant given its speed and scale, just a couple of years after the successful public ASX listing of Dick Smith, as well as the time of year, just following the Christmas period,” he said.
However, Mr Hayes said time would be needed to determine the real causes of such a rapid demise, and that the significant turnaround in the retailer’s financial position required a period of reflection and review.
It comes after receivers Ferrier Hodgson revealed 10 former Dick Smith managers and directors would be called to court to answer questions about the collapse of the company.
The Australian Financial Review reported that Anchorage Capital Partners’ Phillip Cave and Bill Wavish, who represented the private equity firm on the Dick Smith board until early last year, would be grilled on their roles.
Mr Cave, who had previously strenuously denied allegations that Anchorage had pulled off a so-called “private equity heist”, said he would co-operate fully with the
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WHY DID DICK SMITH FAIL?
• The consumer electronics market is highly competitive with rapid changes in consumer demand patterns.
• DSG had a store network much larger than its competitors, and so a higher cost base, with considerable exposure to and reliance on the fast moving office/computer products market.
• DSG was losing market share by experiencing declining comparable sales. Revenue growth was based on store growth and commercial sales at low margins.
• DSG’s expansion plan required considerable financial commitment, utilised all cash resources, required considerable supplier commitment and required bank borrowings.
• Inventory decisions made in this environment were not consistent with consumer demand, and DSG was ultimately left with a considerable level of obsolete and inactive stock, requiring a major writedown.
• Clearance sales did not generate sufficient sales or margin to alleviate the cash pressure.
• Inability to obtain favourable credit terms impacted on stock levels, product mix and store presentation.
• Cashflow pressures led to banking covenants being breached that could not be
Kelly Miller Smith out of all of his siblings took to religion with a fervor. He loved the community and music that was formed from the concepts of Christianity and it was no wonder that when he graduated in 1938 from the Magnolia Avenue High School in Vicksburg, Mississippi; that he chose a double major of Religion and Music. Smith immediately enrolled in college after he graduated high school and attended Tennessee Agricultural and Industrial State College from 1938 to 1940 but in 1941; he moved to Georgia where he attended and graduated from Morehouse College in Atlanta in 1942 with a double major in music and religion. He later received a Bachelor of Divinity degree from Howard University School of Religion in
profitability, slowing demand growth and a surge in private label sales threatened to undermine the
Dave smith is know as the fighting priest, not only for his drive to help the less fortunate and troubled youth, but as a well-known boxer. He is an Anglican Parish Priest, based in Australia. Dave’s goal was to help high-risk teenagers especially those who have anger management issues or substance abuse, as he was formally a troubled youth himself. He uses his 6th degree black belt and professional boxer background to discipline and guide the teenagers. Father Dave was born in Newtown, Sydney in 1962 to Bruce and Joan Smith he was the oldest of three boys. His father, Bruce Smith, was a well-known Evangelical Anglican priest, public speaker and theological lecturer. Father Dave completed an Arts degree with honours in Philosophy in 1984 before heading to the Anglican seminary of Moore College in 1985. After he graduated he completed courses in theology in 1988 and was ordained a priest in the Anglican Church in 1989. Father Dave also published a book and has taken a very public stance on various human
Jedidiah Smith was born on January 6, 1799 in Bainbridge, NY, USA. When he died, he was surrounded by Comachane Indians and died on May 27, 1831 In Northern Mexico. In his early life, Jedidiah became a member of General William Ashley’s exploration and fur trapping group. Smith began his western voyages in 1822. In 1823, he was declared a leader of his tribe. When Jedidiah was born, he was born into a family of 13 and he was put in the middle of it.
Robert J. Samuelson in, “Why are Macy’s and Sears in Distress,” exhibits a very dedicated and thoughtful tone. He begins the article explaining what Macy’s and Sear planned to so to regain profits in their time of economic struggle but that so far there has been no success. When he states “What is puzzling about this,” the audience is able to infer that Samuelson is aware of the details of the situation and acknowledging that the information is not adding up. Samuelson states that he’s written on this subject before due to his belief that “though obscure - it [ creative destruction ] is vital to our economic future,” and continually poses questions about the topic throughout the text showing that he dedicated to find answers about this “siege
The downfall of Tesco has resulted in their chief executive, Philip Clarke stepping down and their UK chief executive Chris Bush, UK finance director Carl Rogberg, UK food commercial director John Scouler and food sourcing director Matt Simister all being suspended after an investigation into how it had happened. Tesco overstating their profits has affected them
To better understand their declining performance, the company then launched an internal review of their operations and determined that the main reasons for their recent struggles were: a decline in department store sales, the rise of fast fashion retailers, the company’s own out-of-date supply chain model, and that the company’s focus was diluted over too many brands and too many initiatives. (“The
JC Penney had to undergo and withstand several competitive issues to include changing of brand image, selling strategy and marketing strategy. JC Penney also had to account for Environmental Factors to include: a population that continued to age and also unemployment rates. JC Penney tried to influence customers by portraying an everlasting sale. No matter how hard JC Penney tried to market their products, if people didn’t
Consumer sales due a sharp decrease in consumer spending led to the closure of KB Toys. Some people during the recession of 2008 could barely buy the necessities to live. This caused a dramatic drop in people visiting stores in the malls. People began to realize the company would close when KB Toys decided not to sell the Nintendo Wii. (Anderson, 2008). KB Toys would be absorbed by Toys ‘R’ Us as a retro brand of toys.
3. Weak Operating Performance Sales per retailing stores was average 6.4 million, the level stayed behind Office Max and Staples. The gross profit margin averages 30% while the operating profit margin almost 0%.
Overall, the profit before tax of the Manufacturing Group decreased 13.24%, and the Retail Group decreased 10.77%, for a total decrease of 11.28%. In simple terms, expenses have increased, profits have decreased, and Harrington Collection hasn’t performed very well over the last several years.
The problem, really, was that the bulk of our product was going into the military, and to a much lesser extent to computer business. But there was this vast consumer market
Finally, the usual shortage where we scrambled to meet demand, turned to surplus, which moved us to either return suits to the main store, or to shop around to find which store(s) continued to experience the demand.
At the time of the case the brand was healthy but it was at a vulnerable point. There had been economic downfall, so the industry as a whole was suffering but Eileen Fisher was stronger than its competitors. Economic factors forced customers to go to discount brands and shy away from department stores, therefore not only was Eileen Fisher losing customers its competitors were as well. Compared
Gross profit dropped minimally by 1.26% from 2011 to 2012. The reasons why gross profit dropped in 2012 were the stiff price competition and the emergence of over-the-top (OTT) players. OTT players provided alternative communication access (Maxis Berhad, 2012, p.17).