Dick Smith creditors owed $250m stay silent

Not a single question was asked of voluntary administrator McGrath Nicol  at the first meeting of the creditors of struggling retailer Dick Smith.

More than 100 interested parties representing over 350 unsecured creditors, owed about $250 million, attended the meeting at the Wesley conference centre in Sydney on Thursday.

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Dick Smith administrators address creditors at a meeting in Sydney.

McGrathNicol will apply to delay the crucial second creditors' meeting for six months to properly assess complex sale transactions. 

McGrathNicol's Joseph Hayes said: "It's our expectation that the meeting period will be extended by the consent of the court." He said such an application was "reasonably routine". 

McGrath warned that more claims could arise as the Dick Smith saga unfolded. 

Mr Hayes acknowledged the lost deposits and gift cards that are no longer redeemable by customers, noting they were "the legal reality facing creditors".


Dick Smith called in McGrathNicol as voluntary administrator last week and its banks appointed Ferrier Hodgson as receiver.

There are 200 unsecured trade creditors, 150 landlords and an unknown number of customers owed roughly $250 million. About 3300 staff are owed $15 million in annual and long service leave ‎as well as wage entitlements.

Dick Smith receiver Ferrier Hodgson has called for indicative bids by next week.
Dick Smith receiver Ferrier Hodgson has called for indicative bids by next week.  Photo: Josh Robenstone

The creditors' meeting comes four days after former chief executive Nick Abboud stepped down.

Retail veteran Don Grover was appointed by Ferrier Hodgson to become the company's interim CEO. The 30-year retail guru was formerly in charge of footwear chains diana ferrari, Williams, Mathers and Colorado as Fusion Retail Brand's CEO and managing director. He also headed up bookseller Dymocks, and held roles in David Jones.

Mr Abboud took the reins at Dick Smith when private equity firm Anchorage Capital Partners bought the company from Woolworths in November 2012 for $115 million. He helped turn around the Dick Smith business, which was publicly listed for $520 million just over a year later. 

Of the 12 subsidiaries in the Dick Smith Group, 11 are in administration and nine are in receivership. Apple reseller Mac 1 is not in receivership. A separate creditors' meeting was held on Thursday morning in relation to Mac 1.

More to come