Dick Smith chief executive Nick Abboud has resigned, effective immediately.
He will be replaced by former managing director of Retail Fusion Brands, Don Grover, as interim chief executive. Retail Fusion Brands is the parent company of fashion retailers Diana Ferrari, Mathers, Williams and Colorado. Grover was also chief executive of Dymocks Booksellers from 2003 to 2012.
According to a media release, Grover will continue to work with receivers in order to restructure the business.
Dick Smith was placed in voluntary administration last week citing the pressure to attain short term funding as a major factor in its decision.
Receivers Ferrier Hodgson have confirmed the publicly traded company’s secured creditors are owed approximately $140 million and unsecured creditors owed approximately $250 million.
Dick Smith today launched online advertisements seeking expressions of interest for a possible acquisition of the company. Ferrier Hodgson said it will accept offers until 27 January and create a shortlist of potential buyers who can submit formal offers. The process is expected to run through February.
This time last year the company reported a $56.8 million year-on-year increase in revenue to hit $693.8 million for the half-year to 31 December 2014, with net profit up $25 million to $25.2 million.
However, disappointing sales come to light at the start of December when the electronics retailer was forced to write-down $60 million on inventory. The company ran a clearance sale during the month in attempt to recoup the cost, but failed to satisfy critics or rejuvenate its stock.
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