Dick Smith chief executive Nick Abboud stands down while receivership continues
Monday, January 11, 2016/
Nick Abboud has resigned as chief executive of Dick Smith Holdings, one week after the electronics retail chain collapsed.
The company’s receivers Ferrier Hodgson revealed this morning that Abboud last night tendered his resignation, which is effective immediately.
Taking his place is Don Grover, who has been appointed as interim chief executive.
Grover is the former chief executive and managing director of Retail Fusion Brands and bookselling chain Dymocks. Grover has also previously held operational positions at department store chain David Jones.
Ferrier Hodgson partners James Stewart, Jim Sarantinos and Ryan Eagle said in a statement Grover will “assist the receivers and managers with the operations of the business as they work through the realisation and restructuring opportunities for the group and seek to sell it as a going concern”.
The receivers have also launched a national campaign to seek expressions of interest in the Dick Smith and Move brands, with advertisements for the business appearing online and in national newspapers.
Ferrier Hodgson said in the same statement the receivers had received more than 40 expressions of interest prior to commencement of the sale campaign, which will continue until January 27. After that time, short-listed interested parties will be invited to undertake due diligence and then submit formal offers in a process that is expected to run through to February.
David Gordon, retail expert and managing partner at LZR Partners, told SmartCompany yesterday it is unlikely that Dick Smith’s major competitors, including JB Hi-Fi and Harvey Norman, will be interested in buying the retail chain because “they don’t need to”.
Ferrier Hodgson said today Dick Smith’s secured creditors are owed approximately $140 million, while unsecured creditors are owed approximately $250 million.
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