Why has Dick Smith requested a trading halt?

This morning the beleaguered retailer asked the Australian Securities Exchange (ASX) to place its shares in a trading halt.

In its statement to the ASX, the company said it had requested a halt pending an announcement regarding its “funding position and debt financing covenants”.

Dick Smith company secretary, David Cooke added that it only required the trading halt until either the commencement of normal trading on Wednesday, Jan 6 or until the announcement was released to the market.

Dick Smith shares have plunged in recent months two profit warnings following disappointing sales in October and November and were listed this morning at 35 cents.

This story first appeared in Appliance Retailer.