Dick Smith sold for $20m as Woolworths dumps electronics business

By on

Consumer electronics retailer Dick Smith Electronics has a brand new owner in a deal worth $20 million after Woolworths has announced that it will be leaving the consumer electronics business in Australia, New Zealand and India.

“We announced the Company’s strategic priorities in November 2011 which included a review of our portfolio of assets, particularly our participation in the consumer electronics category, with a view to maximising shareholder value,” said CEO Grant O’Brien in a media statement.

“These businesses were a small part of Woolworths and this divestment will allow us to be fully focused on the core parts of our business.”

The new owners, Australian private equity firm Anchorage Capital Partners, will take full control of its employees and 325 stores from late 2012. Details remain confidential, but The Age reports that the business had no core debt and has assets worth $290 million.

However, it isn’t a surprise as the entire consumer electronics retail business is being overturned because of online stores. Not only you can purchase goods from the United States via Amazon or local retailers here, but also directly from the manufacturer. You also now have the ability to compare prices – and especially because of the high Australian dollar, the US stores are the preferred choice to many consumers.

The stores will still be around, but expect some heavy cuts in the near future as we shift online.

Image: Sturt Mall

Join the Conversation