Dick Smith gift card recipient told: ‘You have nothing to worry about.’

THIS is how Dick Smith Electronics reassured customers worried about its financial woes. A week later, its gift cards are worthless.

Dick Smith customers were told not to worry

DICK Smith customers are furious the retailer kept selling gift cards over Christmas in the lead-up to its voluntary administration, announced this morning.

The vouchers are now virtually worthless, with the receiver appointed by the retailer’s bank stating it will not honour gift cards or refund deposits.

Ray Cohen was lucky enough to cash in his gift card before Dick Smith went bust, but was less than impressed with how the company tried to pull the wool over his eyes.

In a conversation with the retailer via its Facebook page on December 29, Mr Cohen expressed concern over whether the gift card would hold its value.

“I’m just worried Dick Smith will go bankrupt before I manage to spend it,” he wrote.

“People on the street say DSE is going bust. Please can you send some info out regarding your viability.”

Amanda, a member of Dick Smith’s online help team, came back with a reassuring response.

“Hi Ray, you have nothing to worry about. We will be here a long time to serve our customers.”

But Mr Cohen could not shake his doubts, stating that a Dick Smith supplier mate had told him the company was “struggling to pay its debts”.

“These are internal business matters,” came the reply.

“I can assure you this is not the case. We have no intention of closing down.”

Move along, nothing to see here.

Mr Cohen told news.com.au he had tried to pay for items with a gift card online, but came up against an error message.

“They were economical with the truth, and they failed to acknowledge my concerns,” he said.

“I luckily cashed in the card in store and bought stuff this weekend.”

News.com.au reader Jason McIntosh, from Canberra, said staff at Dick Smith’s Belconnen store told him this afternoon: “Hold onto your gift cards, you will be able to use them in a few days”.

But receiver Ferrier Hodgson this morning released a statement confirming that it would not honour outstanding gift vouchers or refund deposits paid for goods.

Customers still waiting for items ordered from Dick Smith’s website have learned they may never see the goods, with their only remaining options being to seek recourse through their credit card providers, or join the queue of unsecured creditors.

Consumer group Choice said that while customers who paid by credit card could seek to have the charges reversed by their banks, those who used cash or Eftpos would have to register as creditors with the voluntary administrator, and hope for the best.

Angry shoppers have taken to Facebook to blast the company for luring them with its widely publicised fire sale, only to leave shoppers out of pocket.

“Feel horrible for the workers at this time but as for management you can get stuffed!” ‎Sarah Talbot wrote.

“I ordered my Fitbit on Christmas Eve and now it looks like I won’t get it delivered ... Or get a refund from Dick Smith.

“Management would have had to have known the way things were headed and chose to bombard my inbox with at least two emails per day for their supposed sale.

“Yeah, right ... All that did was get people to order online when you knew the orders would never be filled and reduce your own debt in the process.”

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