ASIC urged to investigate Dick Smith collapse

dicksmithIndependent senator, Nick Xenophon, has called on the corporate watchdog to urgently investigate the collapse of electronics retailer, Dick Smith.

He’s also requested a parliamentary inquiry to get to the bottom of what happened, and whether the Australian Securities and Investments Commission was “asleep on the front porch” while the company unravelled.

Senator Xenophon has also demanded private equity firm Anchorage Capital Partners, which floated the company for $520 million in 2013 shortly after buying it for $94 million, support affected employees and consumers.

ACCC monitoring situation
The consumer watchdog is speaking with the receivers at Dick Smith to find out how the electronics retailer’s collapse will affect customers.

Receiver, Ferrier Hodgson, has said it will not honour gift cards or refund deposits on goods, prompting the Australian Competition and Consumer Commission to ask for more detail.

“The ACCC is currently making enquiries of the receivers about how they will be dealing with consumer issues arising,” the watchdog said in a statement on Wednesday.

AAP

Want more Inside Retail? Subscribe to Inside Retail Weekly now and get our premium print publication delivered to your door every week. 

You have 7 articles remaining. Unlock 15 free articles a month, it’s free.