Australian businessman Dick Smith announces food company closure as his rise and fall revealed

The outspoken man behind one of Australia’s most known brand names has revealed he is closing the doors of his food business – the final chapter in his once-booming host of business ventures.

Dick Smith make the shock announcement on Thursday morning, saying he was ‘forced’ to make the move to close Dick Smith Foods after it was crippled by competitor Aldi.

The businessman claimed he wanted to close the company while ‘times were good’ instead of when he was forced to – a result he felt was only months away.

‘It is my melancholy duty to inform everyone that after 19 years, I’ve had to make the decision to close Dick Smith Foods,’ Mr Smith said. 

Dick Smith, the man behind one of Australia’s leading brand names, has revealed he is closing the doors of his food business Dick Smith Foods (pictured in 2001)

The businessman claimed he wanted to close the company while 'times were good' instead of when it was crippled - more than two years after the Dick Smith electronics store (pictured) went into receivership decades after he sold it to Woolworths

The businessman claimed he wanted to close the company while ‘times were good’ instead of when it was crippled – more than two years after the Dick Smith electronics store (pictured) went into receivership decades after he sold it to Woolworths

‘In two years’ time we will go out of business, so I’m closing it down now when times are good.

‘It’s a decision forced on me because most people just want the cheapest prices, and the cheapest prices will always come from overseas.’

The move comes after his trademark store, Dick Smith, went into receivership at the beginning of 2016.

The dramatic rise of the iconic brand began in 1968 when the ambitious entrepreneur, born Richard Harold Smith, first invested $610 in an electronic business and later turned it into a multi-million dollar profit.

DICK SMITH’S RISE AND FALL  

Dick Smith pictured with Dick Smith Foods in 2001

Dick Smith pictured with Dick Smith Foods in 2001

1968 – Founded trademark electronics store Dick Smith 

1978 – Expanded business through NSW, Asia and the US

1980s – Sold Dick Smith electronic store to Woolworths for $25 million 

1986 – Founded Australian Geographic

1995 – Sold Australian Geographic to Fairfax Media for $41 million 

1999 – Founded Dick Smith Foods 

2013 – Dick Smith store had reported market capitalisation of $520 million 

2016 – Dick Smith went into receivership 

2016 – Kogan acquired Dick Smith store weeks after receivership 

July 2018 – Announces closure of Dick Smith Foods 

Mr Smith, who had a net worth of $50 million in 2011, churned out car radio installations in his first venture before rolling out stores across Sydney, New South Wales, years later.

The film maker, who grew up in Roseville, NSW, expanded his radio repair business to Asia in 1978 followed by California and Los Angeles.

In 1980, he had 20 stores in Australia and eventually sold his enterprise to supermarket giant Woolworths for $25 million and more of the iconic yellow and black stores quickly popped up across the country.

More than three decades later, the Dick Smith stores – which had a reported market worth of $520 million in 2013 – went into receivership.

Three weeks after the closure of 363 Dick Smith stores in Australia and New Zealand in 2016 it was announced that  Kogan had acquired the franchise for an undisclosed sum. 

More than 2500 store staff were affected. 

But the businessman’s venture did not end with his much-loved electronics ‘hobby’ store. He later dabbled in publishing and manufacturing when he founded Australian Geographic magazine in 1986 and Dick Smith Foods in 1999.

The millionaire philanthropist, who became the first person to travel solo around the world in a helicopter in 1983, created the geographical magazine before selling it to Fairfax Media in 1995 for $41 million.

The dramatic rise and fall of the iconic brand (pictured) began in 1968 when the ambitious entrepreneur, born Richard Harold Smith, first invested $610 in the electronic business

The dramatic rise and fall of the iconic brand (pictured) began in 1968 when the ambitious entrepreneur, born Richard Harold Smith, first invested $610 in the electronic business

The businessman's venture did not end with his much-loved electronics 'hobby' store as he founded Australian Georgraphic in 1986 and Dick Smith Foods in 1999 (pictured with Order of Australia medal)

The businessman’s venture did not end with his much-loved electronics ‘hobby’ store as he founded Australian Georgraphic in 1986 and Dick Smith Foods in 1999 (pictured with Order of Australia medal)

Dick Smith Foods (Mr Smith pictured in 2011) announced its closure in July, 19 years after it was founded and reportedly exceeded $480 million in retail sales for Australian farmers

Dick Smith Foods (Mr Smith pictured in 2011) announced its closure in July, 19 years after it was founded and reportedly exceeded $480 million in retail sales for Australian farmers

DICK SMITH’S ACHIEVEMENTS  

1968 – Founded Dick Smith electronics

1983 – First solo helicopter flight around the world

1986 – Awarded Australian of the Year

1986 – Founded Australian Geographic

1987 – First person to fly helicopter to the North Pole

1989 – First person to fly around the world via the poles

1992 – First east to west flight around the world in helicopter

1993 – First non-stop balloon crossing of Australia

1996-2000 – National Centenary of Federation Council chairman

1998 – Council for Aboriginal Reconcillliation ambassador 

1999 – Founded Dick Smith Foods 

2010 – Founded film production company Smith&Nasht 

 

Mr Smith later created his Australian owned and produced food company after he became concerned the country lacked local products.

The company, which announced its closure 19 years after it was founded, exceeded $480 million in retail sales for Australian farmers over its lifetime.

‘The aim of Dick Smith Foods was to be “As Australian as you can get”, which meant we supported Australian farmers and manufacturers,’ Mr Smith said.

‘It is clear that is will become more difficult for small and medium sized Australian owned food processors utilising Australian produce to compete in the current marketplace.’

The political activist, who was considered academically hopeless at school, said German supermarket giant Aldi was the ‘driving force’ of the closure of his food business as they ‘completely changed the face of retailing in this country’. 

The food company sold products including their infamous ‘OzEnuts’ peanut butter, ‘OzEchoc’ chocolate spread and ‘OzEmite’ version of Vegemite.

Dick Smith Foods will gradually close over the next 12 months.

The multi-millionaire (pictured) announced Dick Smith Foods would gradually close over the next 12 months and popular products like OzEnuts peanut butter would cease to exist

The multi-millionaire (pictured) announced Dick Smith Foods would gradually close over the next 12 months and popular products like OzEnuts peanut butter would cease to exist



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