ChannelLife NZ - Dick Smith debts nearing AU$400 million; CEO gone

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Dick Smith debts nearing AU$400 million; CEO gone

Dick Smith’s creditors are owed nearly AU$400 million dollars, according to receivers Ferrier Hodgson.

The company was placed in receivership last week by a syndicate of lenders who hold security over the group.

The latest figures from receivers Ferrier Hodgson show secured creditors are owed $140 million, with unsecured creditors owed $250 million.

Meanwhile, Nick Abboud, Dick Smith’s chief executive officer, has resigned, effective immediately.

Receiver Ferrier Hodgson says Abboud handed in his resignation last night.

Don Grover has been appointed interim chief executive and will assist the receivers and managers of Dick Smith Holdings as they work through ‘realisation and restructuring opportunities’ for the group, and their efforts to sell it as a going concern.

An announcement from Ferrier Hodgson says Grover has more than 30 years retail industry. He was previously the chief executive officer and managing director of Retail Fusion Brands, which includes diana ferrari, Williams, Mathers and Colorado, and the Dymocks group of companies. He has also held roles with David Jones.

Ferrier Hodgson today began advertising for expressions of interest for the Dick Smith and Move businesses. The company says more than 40 initial expressions of interest have already been received.

Dick Smith Holding’s business includes 393 stores across Australia and New Zealand, covering four brands – Dick Smith, Electronics powered by Dick Smith, Move and Move by Dick Smith.

As reported yesterday, expressions of interest are open until January 27, after which the receivers will create a short list of parties who will be invited to commence initial due diligence and then submit formal offers.

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