Dick Smith, one of the leading electronics brands in Australia which faced an untimely shutdown, has been bought over by leading online entrepreneur, Ruslan Kogan. Under the deal, Kogan will resurrect the Dick Smith brand by using it in his online retail business.
Kogan purchased Dick Smith’s online retail business for an undisclosed sum from the collapsed company’s receivers Ferrier Hodgson. Dick Smith had announced the closure of its 363 stores across Australia and New Zealand in February after failing to get a buyer. Dick Smith’s online sales were only 8 percent of its total sales, reports The Sydney Morning Herald.
Kogan, 32, will own Dick Smith’s intellectual properties including its brand, trademarks and online business in Australia and New Zealand. The brand’s customer and loyalty databases, websites and domain names will also go to Kogan.
“I remember as a kid always visiting Dick Smith to look for parts to upgrade my computer,” said Ruslan Kogan in a statement.
“There is a strong history of passion in the Dick Smith community for how technology can improve our lives.”
Kogan announced that he would align the Dick Smith brand to Kogan.com after integrating his namesake company’s online architecture with Dick Smith name.
“Dick Smith is one of the most iconic Australian retail brands and we will be able to leverage the millions of dollars we’ve invested in online retail systems and architecture over the last decade to sustainably run the business,” Kogan said.
Kogan will formally take over the Dick Smith brand on June 1 after giving Dick Smith customers until March 22 to stop their details from being passed on to Kogan.
Noting the brand erosion suffered by Dick Smith brand since its collapse, Kogan said he would try to “exceed the expectations of every Dick Smith customer” and make the online retailer “better than ever.”
Kogan also pointed out to the upcoming advantage where in certain brands, including Harvey Norman, which in the past, refused to supply merchandises to Kogan would be willing to work with DickSmith.com.au.
However, Kogan’s purchase will not be helping the 2,500 staff in Australia and another 400 in New Zealand from losing their jobs as the physical stores will remain closed, reports The ABC.
Kogan’s started his online business on a modest note in 2006 by selling TVs from his parent’s home.