People try out laptops displayed at an electronics retail store in Tokyo November, 16, 2014. Japan's economy unexpectedly shrank an annualised 1.6 percent in July-September after a severe contraction in the previous quarter, likely solidifying the view th
People try out laptops displayed at an electronics retail store in Tokyo November, 16, 2014. Japan's economy unexpectedly shrank an annualised 1.6 percent in July-September after a severe contraction in the previous quarter, likely solidifying the view that premier Shinzo Abe will delay a second sales tax hike next year. Picture taken November 16, 2014. Reuters/Yuya Shino

Consumer electronics retailer giant Dick Smith’s Chief Executive Officer Nick Abboud has resigned in the wake of his involvement in a receivership scandal last week.

Abboud will be replaced by Retail Fusion Brand’s ex-Managing Director Don Grover. Retail Fusion Brand is the parent company of retailers in the fashion industry like Diana Ferrari, Mathers, Williams and Colorado. Grover also served as a chief executive of Dymocks Booksellers between 2003 and 2012.

Abboud took charge of the Dick Smith’s management in Nov. 2012 when Anchorage Private Equity purchased it from retail giant Woolworths. Anchorage bought Dick Smith for about $115 million and took it to the heights in two years where the company reaped revenue worth $520 million. After Abboud, Grover will also be working with receivers to restructure the entire business and take it out from the crisis.

Receivers Ferrier Hodgson said that Abboud tendered his resignation on Monday night with immediate effect. He added Grover will work in cooperation with receivers and managers in proper restructuring the business and managing the operation of the company, thereby discovering potential buyers for products.

The receivers have published advertisements on Tuesday in numerous Australiasian sources to gather response on expressions of interest for potential buyers of Dick Smith’s products. The responses will be accepted until Jan. 27. “These advertisements come on the back of over 40 initial expressions of interest from various parties prior to the commencement of the advertising campaign,” Hodgson said as quoted by the New Zealand Herald.

The receivers said that they will shortlist relevant options after the specified period and allow selected potential buyers to access to choose Dick Smith’s books to ensure proper formal bids are submitted. The process might continue until February.

Dick Smith ran into receivership dispute last Tuesday with having to pay $140 million to secured creditors, including National Australian Bank and HSBC, while approximately a $250 million pay to unsecured creditors.

RELATED STORIES