Dick Smith creditors owed $390 million, CEO resigns

RECEIVERS and managers for Dick Smith Holdings, which was placed into voluntary administration last week, have revealed creditors are owed approximately $390 million.

Secured creditors are owed approximately $140m and unsecured creditors owed approximately $250m, receivers James Stewart, Jim Sarantinos and Ryan Eagle, of Ferrier Hodgson, said in a statement today.

The news comes with the announcement that Dick Smith CEO Nick Abboud tendered his resignation last night, effective immediately.

Experienced retail manager Don Grover has been appointed as interim CEO and 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 Ferrier Hodgson receivers said.

"He was formerly the Chief Executive Officer and Managing Director of Retail Fusion Brands (incorporating diana ferrari, Williams, Mathers and Colorado) and the Dymocks Group of Companies in addition to various operational roles at David Jones," the statement read.

"In conjunction with Mr Grover's appointment the receivers and managers have today launched advertisements online and across major publications in Australia and New Zealand to seek expressions of interest for the sale of the Dick Smith and Move businesses."

More than 40 initial expressions of interest were received prior to the commencement of the advertising campaign.

The receivers and managers will be seeking further expressions of interest by or on 27 January 2016.

"Once the Receivers have assessed the non - binding expressions of interest they will develop a short list of parties who will be invited to commence initial due diligence and then submit formal offers," the statement said. "This process is expected to continue well into February 2016."

DSH operates 393 stores across Australia and New Zealand under four brands, Dick Smith, Electronics powered by Dick Smith, Move and Move by Dick Smith.

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