Dick Smith disaster is not my fault, says multi-millionaire Phillip Cave

THE multi-millionaire who pocketed $500 million buying and flipping the Dick Smith electrical chain says it’s not his fault 3000 people have lost their jobs.

Phillip Cave

THE multi-millionaire who pocketed $500 million buying and flipping the Dick Smith electrical chain has written to the company’s founder to say it is not his fault 3000 people have lost their jobs.

Phillip Cave and his team from Anchorage Capital Partners, who have plush offices on George St in Sydney, made $500 million by buying the brand from Woolworths for $20 million and floating it on the stock market just nine months later.

Entrepreneur Dick Smith branded the equity flippers “greedy” after the company still carrying his name announced it had to close last week making 3000 staff in Australia and New Zealand redundant.

Dick Smith stores across Australia closed last week.

“Basically Mr Cave is blaming everyone since he left the business for its collapse. It just seems impossible to me,” Mr Smith said.

“He should offer to pay some of the money he made to the people who have lost their deposits and bought gift cards. (You can’t) go on television and crow about how clever you are with a big smile on your face when there are 3000 people out of work.”

Mr Cave, who lives in a $12 million Harbourfront mansion in Kirribilli, said when the business was floated on the stock exchange in 2013, and he cashed in most of his shares, it had no debt and $100 million in cash.

Despite cleaning up on the deal Mr Cave and his partner Daniel Wong, who also lives in a $6 million Harbourfront mansion, said they had no responsibility to help employees find jobs or refund customers with worthless Dick Smith gift cards.

“I have written to Dick about his comments but he doesn’t seem to be too interested in the facts,” he said.

“As gift cards have a valid life of 12 months and Anchorage sold the Dick Smith business more than two years ago it seems a stretch to suggest we should provide funds for gift cards sold long after we sold the business.”

Mr Cave added much of the $440 million profit flowed back to Anchorage’s investors. But he refused to reveal Anchorage’s fees or exactly how big a slice of the action the firm pocketed.

Anchorage Capital Partners Managing Director Phillip Cave.

“We made a significant investment in staff, stores, marketing and the operating systems, which modernised and dramatically improved the performance of the business.”

Much of the blame for the collapse has been laid at the door of the CEO Mr Cave appointed, former Myer high flyer Nick Abboud.

He made a paper fortune of $34 million when he was made CEO but, unlike Mr Cave, hung on to his stock and lost much of his wealth.

However, he still has his $5 million mansion in Mosman.

Asked if he wanted to comment this week he said: “Absolutely not.”

Former Dick Smiths CEO Nick Abboud.

Originally published as Dick Smith disaster is not my fault, says multi-millionaire Phillip Cave