Dick Smith will close its remaining 363 stores in Australia and New Zealand over the next eight weeks, resulting in the loss of approximately 2980 jobs.
The iconic electronics retailer went into receivership in early January after a run of poor results and the loss of support from its financial backers.
The company closed some stores in late January that had been created as part of a joint venture with David Jones.
Receivers Ferrier Hodgson had still been seeking a buyer for the remaining parts of the business but today confirmed they had been unsuccessful.
“While we received a significant number of expressions of interest from local and overseas parties, unfortunately the sale process has not resulted in any acceptable offers for the group as a whole or for Australia or New Zealand as standalone businesses,” receiver James Stewart said in a statement.
“The offers were either significantly below liquidation values or highly conditional or both.”
Stewart said it was a “very disappointing outcome for the employees of Dick Smith who have given loyal service to the business.”
“We would particularly like to thank the Dick Smith employees for their support and patience during the receivership process,” he said.
The receivers said about 2460 staff from 301 stores in Australia would be affected by the closure, as would 430 staff from 62 stores in New Zealand.
“All Australian employee entitlements will rank as priority unsecured claims ahead of the secured creditors and are expected to be paid in full,” the receivers said.
“Entitlements of New Zealand employees who are made redundant are preferential claims ranking ahead of the secured creditors, and are expected to be paid in full up to a maximum statutory limit of NZD$22,160 under New Zealand law.”
The receivers said they would assist with “outplacement” services for affected staff.
In a letter to employees obtained by Business Insider, the receivers said the timing of store closures would depend on the outcome of a “stock realisation sale”.
Ferrier Hodgson said it had engaged British firm Hilco, which specialises in “distressed investment and restructuring services”, to manage the stock sale and store closures.
The only stores that won’t close are Dick Smith-owned Move stores that are located at airports.
The store’s namesake and founder told The Australian that the closures were “very sad”.