Dick Smith
USD318m buffer protects landlords from Dick Smith store closures
Retail landlords are confident they can relet any Dick Smith stores that may be closed because of the sale of the business by Woolworths.
But to offset any legal action from the landlords, Woolworths has allocated AUD300 million (USD318.4m) for the payment of rent on stores that close.
Real estate broking analysts said the closure of up to 100 Dick Smith stores would have a minimal impact on landlords because the leases are all long term and, if terminated early, landlords would have to be paid out.
Woolworths to sell Dick Smith as sales disappoint
Woolworths plans to sell its struggling Dick Smith consumer electronics division as the supermarket giant steps up its price war with rival chain Coles.
The Sydney-based retailer said it was considering several unsolicited offers for Dick Smith, and would aim instead to sell consumer electronics through its Big W and online operations.
