UPDATED 6.01pm: The company handling the voluntary receivership for Dick Smith is attempting to calm worried employees saying it's be business as usual, for now.

Almost 400 stores here and in Australia have been put into voluntary administration. The company's in debt to the tune of about $40 million and its lenders aren't willing to stump up with any more money.

"Ferrier Hodgson" partner James Stewart said employees will continue to be paid by the Receivers.

He said it's expected Australian employee entitlements will be covered should the company not sell, but mentions nothing about New Zealand employees.

He said receivers are looking at what future opportunities might be available to the group.

The company blamed its financial woes on worse-than-expected sales and cash generation in December, continuing the weak trend from previous months. 

"Whilst confident on the long-term viability of the company, the directors have been unsuccessful in obtaining the necessary support of its banking syndicate to see it through this period," chairman Rob Murray said in a statement on Tuesday.

The company explored alternative funding, but concluded this would not be secured in time to order the required inventory during the next four to six weeks, he said.

The consumer electronics chain has 393 stores in Australia and New Zealand, and has been struggling for some time to compete against more profitable rivals such as JB Hi-Fi and Harvey Norman.

Retail New Zealand General Manager Greg Harford said Dick Smith have had some issues for some time but it's too early to assume a cause.

"Retail is a really competitive market, there's a lot of players in the electronics space. New Zealand retailers are competing both with each other domestically and also internationally, particularly with lower value electronic items."

The announcement comes a day after Dick Smith shares were put in a trading halt, a move that revived investor fears about the company whose share price has tumbled 84 per cent since last May.

The shares have now been suspended from trading.

The retailer first warned in October that full year profit could fall as much as 15 per cent to between $37 million (NZD $39.38 million) and $43 million (NZD $45.76 million), as it stepped up discounting and advertising to restore sales growth.

However, the sales slump continued into November, resulting in the company having to dump its profit forecast a few weeks later.

The retailer was forced to launch a firesale in early December to clear unwanted stock that cost it about $60 million (NZD $63.86 million) in writedowns.

Shares in the company have been battered in recent months, wiping out hundreds of millions in market value.

Dick Smith shares closed at 35.5 cents on the last trading day in 2015.

Retail giant Woolworths received $94 million (NZD $100 million) after selling Dick Smith Holdings to private equity firm Anchorage Capital Partners in 2012.

A year later, Anchorage floated the company on the Australian share market at $2.20 a share, valuing it at $520 million (NZD $553 million).