Nick Aboud, the former executive known for his controversial tenure at Dick Smith, is once again at the center of a retail collapse. His leadership at Cheap as Chips has led the discount retailer to enter voluntary administration after suffering significant financial losses amounting to $38.4 million in 2024. The company, which operated 47 stores across Australia, is now under the control of administrators from WLP Restructuring.
According to ChannelNews, Cheap as Chips faced severe financial distress earlier this year, prompting the decision to appoint administrators Glenn Livingstone, Benjamin Ho, and Nicholas Charlwood. The administrators will manage the business operations during this challenging phase, which is marked by strained funding and fierce competition in the retail sector. Three stores, located in Albury (New South Wales), Wonthaggi (Victoria), and Windsor Gardens in suburban Adelaide, will close immediately.
In a statement, Livingstone highlighted the need for this formal administration process. “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,” he explained. The immediate priority for the administrators includes working closely with creditors, management, and staff to maintain operations and employment during this transition.
As the situation unfolds, it remains uncertain which suppliers have been affected by the retailer’s decline. Ayonz, a distributor based in Sydney that supplies products like Germanica appliances and Blaupunkt televisions, is reportedly among those impacted. Additionally, the Australian Financial Review has indicated that Canadian retailer Dollarama, which recently acquired The Reject Shop for $295 million, may express interest in purchasing Cheap as Chips.
Aboud replaced former chief executive Shane Radbone, who had held the position for four years and aimed to take the company public within three years. Aboud, who previously led Kidstuff for a brief period, is best known for his controversial leadership at Dick Smith. Under his direction, Dick Smith underwent significant restructuring, including changes in buying practices and supply chain operations. Initially, Aboud projected that Dick Smith would become “bigger than JB Hi-Fi.”
Despite a promising initial public offering, Dick Smith’s fortunes deteriorated rapidly. The company succumbed to financial pressures, culminating in its collapse into receivership and liquidation in January 2016, with debts exceeding $390 million. This incident remains one of the most notable retail failures in Australian history, prompting extensive legal scrutiny into its accounting practices.
Following the fallout from Dick Smith’s collapse, Aboud’s brief stint at Kidstuff ended before he took the helm at Cheap as Chips. The current financial issues at Cheap as Chips mirror those preceding the Dick Smith failure, including heavy losses, supplier withdrawals, and strained credit terms.
As the administrators work to navigate this turbulent period for Cheap as Chips, the broader implications for the Australian retail landscape remain to be seen. The company’s ability to restructure and emerge from this phase will depend heavily on the support it can garner from stakeholders and potential buyers.
