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​CFO out and 3,200 staff underpaid as Dick Smith owes further $2 million

​CFO out and 3,200 staff underpaid as Dick Smith owes further $2 million

Receivers analysing the books of embattled retailer Dick Smith reveal more woe.

Receivers analysing the books of embattled retailer Dick Smith estimate an underpayment of $2 million, impacting 3,200 current and former employees dating back to 2010 in Australia.

Impacting only Australian employees, with New Zealand unaffected at this time, a further 22 support office jobs have also been cut, alongside the high-profile departure of CFO Michael Potts.

As receivers desperately continue to restructure the struggling store chain, Bert van der Velde has been drafted in as an interim CFO, following senior executive roles at Woolworths, Eldorado Company and Metro Cash and Carry.

At present, receivers Ferrier Hodgson are in the midst of restructuring the company’s support operations based in Chullora, New South Wales, with no immediate plans or mentions regarding the New Zealand market.

"The ongoing restructuring of the business is a necessary step in creating a leaner organisation going forward, while our discussions with interested parties continue,” Ferrier Hodgson said in an issued statement.

During the investigation however, Ferrier Hodgson claims to have discovered underpayments of annual leave as far as back six years ago, impacting Australian employees only at this stage.

“The underpayment of entitlements appears to reflect an incorrect application of the relevant industrial award,” added Ferrier Hodgson, who have also alerted the Fair Work Ombudsman and Shop Distributive and Allied Employees’ Association (SDA).

At present, secured and unsecured creditors are owed a total of $390 million, with CEO Nick Abboud resigning and 27 stores so far set to close down, impacting 181 employees.


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