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Australia's Dick Smith CEO resigns; receiver seeks buyers
January 11, 2016 / 11:31 PM / 2 years ago

Australia's Dick Smith CEO resigns; receiver seeks buyers

SYDNEY, Jan 12 (Reuters) - Dick Smith chief executive Nick Abboud has resigned a week after the failed Australian electronics retailer went into receivership with debt of A$390 million ($272.61 million), its receivers said on Tuesday.

Don Grover has been appointed interim CEO, receivers Ferrier Hodgson said in a statement. Gover was formerly CEO of Retail Fusion brands and has more than 30 years experience in the industry.

The receivers also launched advertisements on Tuesday seeking expressions of interest for the sale of the Dick Smith and Move businesses.

More than 40 parties have indicated their interest in buying the retailer, Ferrier Hodgson said. Bids for the purchase must be submitted by Jan. 27.

The process of short-listing prospective buyers, conducting due diligence and eventually finding a buyer was expected to continue into February.

Dick Smith’s collapse, just two years after listing, has sparked criticism about some of the methods that private equity firms use to prime their investments for sale.

Anchorage Capital Partners bought the company in 2012 for less than A$100 million from supermarket giant Woolworths Ltd , aggressively expanding its footprint before selling out for $A520 million just 15 months later. ($1 = 1.4306 Australian dollars) (Reporting by Swati Pandey; Editing by Stephen Coates)

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