Printers owed Dick Smith bad debt unlikely to be paid

Collapsed electronics retailer Dick Smith’s name has appeared on several printers’ financial results, owing companies millions worth of bad debt and creditors don’t expect to receive a cent.

The insolvent retailer scrambled to clear debt through a failed fire-sale earlier this year, and the brand has now been picked up by e-commerce pioneer Ruslan Kogan. However, it is uncertain if Dick Smith’s unhealthy balance sheet will follow suit.

Prominent Australian printers including catalogue publisher PMP and pre-media business Wellcom felt the heat following Dick Smith’s collapse, both naming the failed retailer as an obstruction to 2016 revenue.

Resolving the financial debt for creditors seems unlikely after Dick Smith announced it expects to owe around $2m in wages and annual leave for redundant employees.

After failing to sell off its bricks and mortar stores, the online domain was rescued by Kogan, who plans to add Dick Smith’s product list to his existing $250m business.

The brand may be saved, but the long list of creditors and $200m plus debt remains unlikely to be recouped.

A creditors meeting took place in January this year and a second meetings of creditors for companies in the Dick Smith group will be held on or before 9 August 2016.

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