The Dick Smith CEO is out

Dick Smith’s CEO Nick Abboud has thrown in the hat, handing his resignation in overnight, effective immediately.

Don Grover, the former CEO and managing director of Retail Fusion Brands (Williams, Mathers, Colorado) has been appointed as interim CEO.

Coinciding with Grover’s appointment, the receivers have also today launched an advertising campaign across publications in both Australia and New Zealand to seek expressions of interest around the sale of Dick Smith.

The EOIs will be non-binding, and mainly designed to give the receivers an indication of their prospects selling the company.

Dick Smith receivers Ferrier Hodgson said last Friday that more than 30 parties are already interested in purchasing the electronics business.

The first meeting of creditors will take place this Thursday the 14th of January at the Wesley Conference Centre in Sydney’s CBD.

Early last month, Dick Smith chairman Rob Murray said he would continue to back Abboud as CEO of the company.

“Nick is the best person to get us through this period,” he said.

Dick Smith announced last Tuesday that the Australian electronics chain would be going into voluntary administration after poor management and sales forced it into large debts.

Creditors are currently owed approximately $140 million, while unsecured creditors, such as those with gift cards, are owed $250 million.

The retailer’s shares last traded at 35.5c — 83 per cent lower than its debut price of $2.20 when Anchorage floated it on the Australian Securities Exchange in December 2013.

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