Anchorage Capital acquired Dick Smith for A$115m in November 2012. Upon consolidation into a newly established vehicle, inventory was written down by A$59m, fixed assets by A$55m while A$8.1m of provisions were established. These adjustments lowered cost of goods sold and depreciation, making the company look temporarily profitable. Anchorage listed the business on the Australian stock exchange in December 2013, exiting the investment for an estimated A$433m by September 2014. Trading into the end of 2015 was disappointing (presumably as inventory was replenished at a higher cost), and the company defaulted on loans in January 2016, prompting share suspension and administration.

Last updated August 2021

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