Dick Smith receiver Ferrier Hodgson has announced big changes to the struggling electronic retailer’s support office, a new CFO and news that employees have been underpaid.
The immediate restructure of the company will see the loss of 22 support jobs as well as the departure of Dick Smith’s CFO Michael Potts. Bert van der Velde, who has worked in senior roles for Woolworths and Metro Cash, has been appointed as the interim CFO.
Ferrier Hodgson’s James Stewart said: “The ongoing restructuring of the business is a necessary step in creating a leaner organisation going forward while our discussions with interested parties continue.”
As part of their assessment of the Dick Smith business, Ferrier Hodgson also discovered that retail employees in Australian stores have been underpaid with their annual leave.
Mr Stewart said: “Based on our investigations to date, we understand that up to 3,200 current and former employees of the Australian business may have been underpaid their annual leave loading entitlements, potentially dating back to 2010.”
In total, it’s said to amount to around $2 million of unpaid wages.
The receivers have confirmed that any additional Australian employee entitlements identified will rank as priority claims ahead of the secured creditors.