Since its collapse, Dick Smith has been subject to allegations of "creative accounting" and plain poor management. Others see it as just one of the slower-moving victims of online. We now have the official verdict and indeed bad management seems to be the nub of it. Why should retailers take some comfort from this? Because bad management is not systemic - bad management can be diagnosed and it can be cured or excised. It is tempting to see Dick Smith's demise as the beginning of the end of high-street electricals, but it is not. It is a reminder that, with the correct team in place and strong governance, success is still available.
Corporate administrator McGrathNicol, which was appointed by the company this year, released its investigative report on Wednesday – detailing a litany of strategic management blunders, ranging from over buying inventory to aggressive expansion, the wrong choice of product and taking on too much debt.