Printers hit by Dick Smith receivership

Unsecured creditors, including print companies, have named struggling retailer Dick Smith as a significant obstruction to 2016 revenue.

The debt owed to print creditors remains up in the air as the under-fire electronics store struggles to piece together the $200m plus owed.

The collapse pushed printer PMP’s half year results down considerably, leaving the print company $2.7m out of pocket and recording a 56 per cent drop in profit

PMP describes the funds owed by Dick Smith as ‘the largest bad debt in over 10 years’ and calls it ‘unrecoverable’.

Print and pre-media business Wellcom says Dick Smith impacted operating margins, also specifically naming the electronics chain as disrupting full year growth for 2016.

Wellcom stated in its results, “A strong first half to the financial year is likely to be tempered slightly in the second half [due to] the ongoing viability of some retail clients including Dick Smith.”

Dick Smith’s long list of creditors remain uncertain of whether bad debt will ever be recovered, and both PMP and Wellcom appear to be moving forward with plans to offset the debt impairment.

The retailer went into receivership last month and an attempted to deliver a return through a sudden fire-sale before Christmas last year.

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