Kogan buys Dick Smith’s online business
Pureplay online retailer, Kogan.com, has acquired the Dick Smith online retail business, after the electrical retailer collapsed into administration in January.
Kogan.com will keep the Dick Smith brand alive and run the businesses as an online-only consumer electronics retailer in Australia and New Zealand.
“Dick Smith is an iconic Australian brand and we’re thrilled to be able to keep it alive, as well as Aussie owned and run,” said Ruslan Kogan, founder and CEO of Kogan.com.
“We will invest in building and nurturing the Dick Smith community, and honour the great legacy of this Australian business.
“I remember as a kid always visiting Dick Smith to look for parts to upgrade my computer. There is a strong history of passion in the Dick Smith community for how technology can improve our lives, and we look forward to helping make it more affordable and accessible for all.”
After the chain collapsed with debts totalling around $400 million, Kogan described the moment as “bittersweet” and, when asked if he would consider buying Dick Smith, responded: “We’re always considering all opportunities.”
Kogan.com opened a pop-up store from December 2015 to February, which does not appear to have given the pureplay retailer a taste for bricks and mortar retail.
Dick Smith’s online assets were advertised for sale earlier this month, after receivers failed to find a buyer to run the business as a going concern. There will be a transition period during the closure of the the chain’s bricks and mortar store network and Kogan.com will operate the online business from June 1, 2016.
“After a thorough process with multiple bidding parties we are pleased that Kogan.com is the successful acquirer of the Dick Smith online business,” said James Stewart, receiver.
“As Australia’s largest pureplay online retail website, Kogan.com is a natural and logical owner of the Dick Smith online business and we are particularly pleased that the Dick Smith brand will continue under its stewardship.”
As part of the deal Kogan also acquires customer data currently held by Dick Smith.
The receivers stated all customer information will be handled in accordance with the requirements of Australian and New Zealand privacy law during the change of ownership. All Dick Smith customers will be contacted with the option of having their details removed prior to the transfer to new owners.