Australian business entrepreneur Dick Smith has issued a warning to the company that currently is his namesake.

The founder of Dick Smith Electronics said he would "rubbish" the company he helped create if the current owners sold it into foreign ownership.

The stunning warning comes as Woolworths was reportedly preparing to shut down under performing stores and sell off the struggling business, Fairfax reported.

"There will be a real problem if Woolworths do sell it to a foreign-owned company," Mr Smith said

"I'll rubbish them the whole time. They wouldn't want to pay much."

The businessman said he was fighting against foreign ownership of the Dick Smith Electronics brand because it would hurt Australia.

"I'm a proud Australian and this is just continuing where all the wealth is going overseas and damaging our country," he said.

"I would just point out all the time that this is further destruction of Australia."

Smith said he wasn't surprised Woolworths was looking to sell the brand, saying that it no longer had the opportunity for growth it had years ago.

"The reason why Woolworths wants to sell is they have to have businesses with growth and I don't think there's any growth in that field," he said.

"I think this is a sign of extreme capitalism coming to the limits of growth. I think they're doing a sensible thing and they've owned Dick Smith for 30 years and made a fortune out of it, but once the growth is gone, which I think it has in that field, I can understand them selling it.

"I'm amazed that they've kept it for so long."

Smith said he believed the business would go because no other public listed company would be interested in buying it.