DSH - Nick Abboud, page-9

Woolworths has sold the Dick Smith electronics brand and its 325 stores to a private equity group for $20 million.
The retail giant has been trying to offload its electronics subsidiary since early this year, and has finally found a buyer in the form of Anchorage Capital Partners.
The deal is expected to be completed later this year, with Woolworths receiving $20 million this financial year and also retaining the potential to benefit from any upside resulting from a future sale of Dick Smith by Anchorage - Woolworths has not attempted to quantify the potential size of this possible benefit.
Last financial year Woolworths booked a $420 million cost related to its restructuring of the Dick Smith business.
Under the agreement, Anchorage will take over Dick Smith's 325 stores, which employ more than 4,500 staff.
Anchorage says its intention is to maintain the current store network and consider selective expansions in the future.
Morningstar's head of equities Peter Warnes says he is doubtful all the stores will remain open in the longer term.
"It's all very well to be upbeat about something you've just bought, but you have to be realistic and they've got 4,500 employees and 325 stores - that takes a lot of profit to support, and the space is very competitive," he said.
"To close a store costs money - you don't just put a lock on it and say see you later, there are ongoing commitments - they will rationalise down the track, particularly if the stores are not profitable.
"If the store isn't profitable and can't stand on its own two feet you [have] got to close it, you can't continue to subsidise and cross-subsidise."
In the context of a very competitive industry, Mr Warnes says the low sale price is probably fair.
"They certainly weren't going to pay a big dollar for it because it is going to be a reasonably difficult turnaround for it given the pressures on margins and deflation in the space and the continued frugality of consumers at this present point in time," he observed.
"You know, consumer electronics is not the boom segment it was four or five years ago."
Dick Smith will be run by Nick Abboud, who recently resigned from his senior executive position at Myer after 19 years with the department store.
http://www.abc.net.au/news/2012-09-27/dick-smith-sold-to-private-equity/4283098

Note the number of stores and staff at the time of the sale to Anchorage, compared to current store and staff numbers:
The receiver of the troubled chain has told employees across its 393 stores - See more at: http://www.skynews.com.au/business/...es-face-8-week-wait.html#sthash.n0GuVyjr.dpuf

From their website:
Put simply, Dick Smith is a great place to work. We value each one of our 3300+ employees and support them with the training and incentives they need to power ahead in life.  When you join Dick Smith you join an organisation with a strong and rewarding culture with an exciting future.

So 68 additional stores and more than a thousand less staff