Amongst the parties which have lodged a submission with Senate committee investigating the failure of Dick Smith is the Australian Private Equity and Venture Capital Association (AVCAL).
The submission to the Senate Economics References Committee, according to the Australian Financial Review, is said to illuminate the circumstances that many retailers face when they are backed by private equity.
AVCAL (it has been reported) claims that private equity has not hindered growth in the retail sector and cannot be held responsible for failures. The submission is said to cite data suggesting a lower failure rate for private equity-owned or backed retailers when compared with industry averages.
The AVCAL submission is also said to touch on private equity’s broad reach and contribution to the domestic economy.