It seems that word is spreading quickly at Dick Smith Electronics, and the company chairman has confirmed it will stand by CEO, Nick Abboud, amidst rumours of hiring Algy Pereira, from Big W. Dick Smith Electronics are not denying Algy’s hire, and he may join the business after the completion of his non compete clause, early next year.
Article from smh.com.au:
“Dick Smith chairman Rob Murray is standing by his embattled chief executive Nick Abboud, dismissing reports the retailer’s CEO is set to be replaced by a former BIG W and Myer executive.
Mr Murray said Dick Smith was focused on Christmas trading and its strategic review is now underway – “Nick is the best person to get us through this period.”
Mr Murray, who took the chair in February from Anchorage Capital Partners chairman Phil Cave, denied reports in online trade publications that Mr Abboud had been given four months notice and would be replaced by Algy Pereira, head of trade and family entertainment at BIG W, following a profit downgrade last month and a blow-out in inventories.
“Algy may well join Dick Smith but not as Nick’s replacement,” said Mr Murray.
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However, he did not rule out changes in the senior executive team in the future. “Whenever we manage succession on any of our key roles we will do it in the optimal way and timing for the business,” Mr Murray said.
Mr Pereira, who worked with Mr Abboud at Myer for many years, including two years as general manager of electrical, resigned from his role at BIG W on Tuesday, fuelling rumours that he was set to take the top job at Dick Smith.
However, a Dick Smith spokesman said Mr Pereira had been appointed director of retail operations at Dick Smith and denied that he would immediately replace Mr Abboud.
“He certainly wasn’t brought in as an immediate replacement for Nick. It is part of internal succession planning,” the spokesman said.
Mr Pereira will have to serve out a non-compete period with BIG W and is expected to join Dick Smith early next year.
Dick Smith shares – issued at $2.20 two years ago – plunged as much as 70 per cent to just 20¢ on Monday and closed down 57 per cent at 28¢ after the company slashed the value of inventories by 20 per cent less than four weeks before Christmas to clear the way for deeper discounting in a desperate attempt to boost sales.
The shares have since recovered some of their value, rising 7.5¢ to 42.5¢ on Wednesday, but more than one quarter of the shares on issue have changed hands in the last few days.
The retailer is expected to kick off a massive clearance sale on Saturday to sell off excess stock.”
Source: smh.com.au – http://www.smh.com.au/business/retail/dick-smith-chairman-rob-murray-stands-by-embattled-ceo-nick-abboud-20151202-gld7sq.html
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