Nick Aboud, the former retail executive who once aspired to lead Myer but instead presided over the collapse of Dick Smith, has again overseen the failure of a major Australian retail chain — this time Cheap as Chips.

He has now resined as both a Director and CEO of the business.

ChannelNews exclusively revealed earlier this year that Cheap as Chips, which then operated 47 stores nationally, was in serious financial distress after recording losses of $38.4 million in 2024. T

he discount retailer has now entered voluntary administration.

Cheap as Chips is owned by Alceon Private Equity, the firm whose retail investments have included Dick Smith and, more recently, Mosaic Brands — which collapsed earlier this year owing more than $350 million to creditors.

Nick Aboud is the chief executive of the Alceon-owned Cheap as Chips business.

Administrators Glenn Livingstone, Benjamin Ho and Nicholas Charlwood of WLP Restructuring have been appointed and have taken control of the business, which is now being run on a day-to-day basis under administration.

Three Cheap as Chips stores — in Albury (NSW), Wonthaggi (Victoria) and Windsor Gardens in suburban Adelaide — will close immediately.

In a statement, WLP said the appointment followed a challenging trading period driven by funding constraints and intensified local and international competition.

“The formal administration process will provide a pathway to independently assess the sale terms entered into with Choice The Discount Store prior to the appointment, and to restructure the company’s financial obligations, which form part of the sale conditions,” Livingstone said.

“Our immediate focus is on working with creditors, management, staff and the purchaser to ensure continuity of operations and employment while examining the proposed transaction.”

It is not yet clear which consumer electronics and appliance suppliers have been impacted. Sydney-based distributor Ayonz, which supplies Germanica appliances and Blaupunkt televisions listed on the Cheap as Chips website, is believed to be among those affected.

According to WLP Choice the Discount Store is the interested purchaser of the business and has already entered into a sale contract with Cheap as Chips prior to the administration.

Aboud replaced long-time Cheap as Chips chief executive Shane Radbone, who led the company for four years after heading a management buyout in 2016. At the time, Radbone described Cheap as Chips as a $150 million business with plans to list on the ASX within three years.

Aboud joined Cheap as Chips from Kidstuff, where he served as CEO for less than six months. He was previously best known for senior roles at Myer and for his tenure as CEO of Dick Smith during its ill-fated private equity ownership.

After serving as a senior retail operations executive at Myer, Aboud reportedly departed the company after being overlooked for the top job. In 2012, he joined Anchorage Capital Partners, which had acquired Dick Smith from Woolworths, and was subsequently appointed CEO.

Under Aboud’s leadership, Dick Smith underwent major restructuring, including changes to buying practices and supply chain operations, ahead of a highly publicised ASX float. At the time, Aboud claimed the business would become “bigger than JB Hi-Fi.”

While the IPO initially appeared successful, the company soon began to unravel. Aggressive inventory strategies, pressure to maximise supplier rebates and an increasingly uncompetitive product range led to mounting financial stress.

Dick Smith collapsed into receivership and liquidation in January 2016 with debts exceeding $390 million. All stores were eventually closed, marking one of the most significant retail failures in Australian history.

The collapse triggered extensive legal scrutiny, including a nine-day public examination in 2016 in which Aboud and other directors were questioned over accounting practices, inventory valuation and supplier rebates. While some allegations of breach of duty were pursued, courts later found that Aboud did not engage in misleading conduct in certain cases.

Following the Dick Smith collapse and his brief tenure at Kidstuff, Aboud took over Cheap as Chips — where the business has now suffered heavy losses, supplier withdrawals and tightening credit terms that closely mirror the conditions that preceded the Dick Smith failure.