Anchorage Capital Partners and Mangement, led by Nick Abboud, today said it completed a release from the financial obligations of Dick Smith to its former partner Woolworths.
The buyout coincides with the Phase 1 completion of Dick Smith’s turnaround initiative which Anchorage Capital said has increased operational efficiency, profit margins and growth, since the initial takeover from Woolworths in 2012.
“This is a very exciting day for Dick Smith - one that we have been working towards since Anchorage first came on board," he said.
"The Dick Smith business is in a strong financial position with cash in the bank and no net debt. Based on Dick Smith’s performance over the last six months we are confident the business will continue to experience positive growth and performance as a major player in the Australian consumer electronics industry.”
“Dick Smith is committed to helping consumers get the most out of their technology and that starts in store. In the coming months we will be announcing a number of exciting initiatives that will see major changes to customers’ retail experience and an expansion of Dick Smith’s footprint throughout Australia and New Zealand.”
The purchase initially took place on 27 September 2012, for $20 million.
Dick Smith himself sold the business to Woolworths for $20 million back in 1982, and the business still retains his name in the business title to this day.