By Mathew Dunckley
Embattled electronics chain Dick Smith will close its network of outlets in David Jones department stores as the company's receivers try to find a buyer for the failed retailer.
Receivers Ferrier Hodgson announced on Friday that the 27 concession stores located in David Jones stores (known as David Jones Electronics Powered by Dick Smith) would be closed.
In a statement the receivers - James Stewart, Jim Sarantinos and Ryan Eagle - said the closure would affect 181 jobs, mostly part-time and casual.
The receivers are in the middle of an attempted sale of Dick Smith after it went into administration in early January. An information memorandum has recently gone to potential buyers.
"The receivers have been undertaking an ongoing review of the operations of the group with a view to maintaining stable operations in order to facilitate its sale as an ongoing concern," they said in a statement.
"As a result of this review, the receivers have determined that they will no longer continue to operate the 27 David Jones Electronics Powered by Dick Smith concession stores, contained within David Jones department stores.
"The relationship between Dick Smith and David Jones will come to an end effective from close of business on Wednesday, 27 January 2016, with the terms of the termination having been mutually agreed between the parties."
The receivers said Dick Smith was trying to "identify opportunities for future employment for as many of the affected staff as possible through the Dick Smith network".
They said the closure was "a necessary step" to try and ensure the commercial viability of Dick Smith .
Dick Smith's administrators confirmed on Thursday they intended to file a court application within the next week seeking orders to extend the period of time to convene the second meetings of creditors up to August 2.
The administrators - Joseph Hayes, Jason Preston, Jamie Harris and Matt Caddy of McGrathNicol - flagged the postponement at the first creditors meeting last week but did not indicate the length of the proposed postponement.