Local jobs may be at risk after Woolworths announced on Tuesday that the Dick Smith consumer electronics brand will be divested.
After conducting a strategic review into the chain in November 2011, the Woolworths group decided that it was in the best interest of the company to close up to 100 underperforming stores in the next two years before selling the brand.
Woolworths Limited CEO, Grant O’Brien, said that it was in the interest of both companies to separate from the brand.
“Dick Smith is an iconic specialty consumer electronics brand, with a strong team and its own leading online presence. However we believe that separating this speciality model from Woolworths is now the best option for the future of both businesses,” Mr O’Brien said.
“Business will continue as usual for Dick Smith, its customers, suppliers and staff, building on the strong Christmas sales period.”
But it will not be business as normal for 100 stores who will be shutting their doors.
The Weekender can confirm that the Dick Smith Powerhouse on Mulgoa Road will be remaining open but the future of the Westfield Plaza store has not been decided.
Woolworths issued a statement saying that affected staff will be offered redeployment elsewhere in the Woolworths group.
Entrepreneur, Dick Smith, who sold his company to the corporate giant Woolworths in 1982, has told media that he does not want to see the namesake company fall into international hands.