Dick Smith Board Wanted Abboud Gone Months Before Collapse
Former non-executive director of the failed consumer electronics retailer Jamie Tomlinson spoke today before the NSW Supreme Court saying that he wanted Dick Smith CEO Nick Abboud replaced from as early as October 2015.
Jamie Tomlinson said that was unhappy with Nick Abboud’s management of the company’s cash flow, inventory and relationships with both suppliers and banks.
Mr Tomlinson told Dick Smith Chairman Rob Murray in an email: “Nick has no credibility with suppliers, shareholders, some management and me”.
He told the court that soon after his appointment to the company’s board, he quickly came to believe Mr Abboud was “out of his depth” in his role as CEO.
Tomlinson was particularly scathing of Abboud’s inventory practices and decision to stop promoting Apple products.
During the examination he recalled visiting several Dick Smith stores and being disappointed by the brands on offer.
“I just don’t know who was going to buy them,” he said.
Tomlinson had little to say about former-Woolworths CFO Bill Wavish, who defended the retailers reliance on rebates earlier this week.
However, he did shed some light on the internal politics of the company in the lead-up to the collapse.
He told the court that he never met Mr Wavish but understood that he had a “strong personality.”
An internal email between Tomlinson and Rob Murray suggested that the departure of Wavish was “a blessing” when it came to the leadership of the company.