DSE (NZ) Limited (Dick Smith) receivership and voluntary administration
What you need to know if you are affected by the current Dick Smith situation.
Updated 12 January 2016
On 4 January 2016, electronics retailer DSE (NZ) Ltd (also known as Dick Smith) was placed into receivership. The next day, voluntary administrators were appointed to Dick Smith. Other companies in the Dick Smith group are also in receivership and voluntary administration.
The receivers and voluntary administrators have control of Dick Smith’s business, and while that arrangement is in place are responsible for making all decisions about the company's operations.
As Dick Smith has entered receivership and voluntary administration, you may be affected as a consumer if you have:
- an unused gift card or voucher
- a layby agreement
- purchased an extended warranty product
- paid in full for goods or services but have not received them (for example made a purchase online and not received the goods)
- faulty goods
- purchased goods from Dick Smith using finance.
In these circumstances, consumers who have been affected are likely to be unsecured creditors of Dick Smith. Consumers who are unsecured creditors will be entitled to register a claim with the voluntary administrators. Further information regarding registering a claim and the administration generally can be obtained by contacting the administrators:
- Call voluntary administrators McGrathNicol on 09 366 4655
- Go to the McGrathNicolopen_in_new website and click on "Dick Smith NZ"
The receivership and administration (and any subsequent liquidation) will likely determine whether customers get a full refund, partial refund or no refund at all.
We discuss here some of the common consumer situations and how customers can address them. In every case, customers should hold on to their Dick Smith vouchers or receipts until their issues have been resolved.
Gift vouchers purchased with a credit card or debit card
If you have purchased a Dick Smith gift voucher using a credit card or debit card you may be able to raise a query with your card issuer, and seek recovery of the amounts you have paid. This process is sometimes called a "chargeback". You should contact your card issuer promptly as there are conditions and time limits on making payment queries.
If you paid for vouchers with cash, or you don’t want to raise a query with your card issuer, or if it has rejected your query, you can register with the voluntary administrators as an unsecured creditor.
Deposits paid for an item
If you can’t get a refund on a deposit you have paid for an item, and the item is not supplied to you, you can register with the voluntary administrators as an unsecured creditor.
If you paid for the deposit with a credit card, you may be able to raise a query with your card issuer (see above).
Outstanding orders
If you have ordered an item but not received it, you should contact Dick Smith in the first instance.
Alternatively, if you paid for the item with a credit card, you may be able to raise a query with your card issuer (see above).
If you can’t get the item you ordered, or your card issuer rejects your query, you can register with the voluntary administrators as an unsecured creditor.
Laybys
If Dick Smith offered laybys (that is not yet known), the Fair Trading Act 1986 has some specific provisions that deal with the situation where the company is in administration or receivership. Provided you are up to date with your payments, you can complete the layby agreement by making all remaining payments due, provided that Dick Smith has sufficient items available.
Customers who have an existing layby should contact Dick Smith in the first instance to check on the availability of the goods. If sufficient goods are available you can complete the layby purchase and take possession of the goods. If sufficient items are not available, then layby customers have priority above other unsecured creditors and some secured creditors to certain assets for the value of amounts already paid. In that situation, you can register your claim with the voluntary administrator as an unsecured creditor – but make sure that you specifically say that you have a layby.
Faulty goods
Customers still have consumer guarantee rights in relation to faulty products while a company is under administration, although it can be challenging to pursue these rights. If Dick Smith does not assist you with a faulty product, you can raise the problem with the voluntary administrators.
Importantly, you also still have rights against the manufacturer of goods, under the Consumer Guarantees Act 1993, and you may have other rights under an extended warranty that you purchased. If you do not receive satisfaction from Dick Smith, you should contact the manufacturer of the goods and/or the insurance provider listed in your extended warranty documents.
If you have goods that are currently with Dick Smith for repair or assessment you can ask for them to be returned to you. The goods are your property and you are entitled to them.
Goods purchased using finance
Customers who have purchased goods on finance and who have received those goods should continue to make repayments. You have entered into a finance contract with a third party (likely Q Card) and that arrangement is unaffected by Dick Smith’s current situation. If you have not received the goods you should contact the finance company.
Contact information – registering as an unsecured creditor
If you are an affected consumer, you can register as an unsecured creditor of Dick Smith.
To do so, contact the voluntary administrators:
- Call voluntary administrators McGrathNicol on 09 366 4655
- Go to the McGrathNicolopen_in_new website and click on "Dick Smith NZ"