Abboud's decision to switch camps after 19 years at Myer and team up with private equity firm Anchorage to buy Dick Smith delivered him a 6.5 per cent stake in the electronic group's float in 2013. At its peak, that stake was worth $34 million. Former Dick Smith chairman Phil Cave and CEO Nick Abboud have been summonsed to appear in court for examination by Dick Smith's receivers. Credit:Louise Kennerley Dick Smith's prospectus said Abboud was also paid $6 million as part of the float. ASX records show no information regarding Abboud selling any of his stake, despite Anchorage disposing of its holding in 2014; the year before Dick Smith's problems became apparent. Affable and self-assured, Abboud was confident at the time of the $520 million Dick Smith initial public offering that he could build on the company's apparent turnaround and improve on the profits forecast in the prospectus.

He has been described by insiders as personally devastated by the events of the past few months, having been both "passionate [about] and proud" of Dick Smith. In August 2015, he spent $200,000 buying additional shares in the company, suggesting a belief in its prospects. Dick Smith's receiver, Ferrier Hodgson, has installed well-known retailer Don Grover to take over the day-to-day running of the group, for which formal expressions of interest are now being sought. Whether Dick Smith can be sold as a going concern is a matter for debate. The chain remains open for business as it attempts to clear $220 million (at cost) of inventory at deeply discounted prices. The secured bank creditors owed $140 million will get first bite at the cherry, which is unlikely to leave much, or indeed anything, for unsecured creditors – primarily suppliers – who are owed an additional $250 million. Dick Smith voucher holders and those who have placed deposits on store goods are unsecured creditors. Not all suppliers will be left in the lurch, with a small group of powerful big brand names recently having changed payment terms from 35 days to cash on delivery. Given most suppliers are insured, the largest group within the unsecured creditor list are trade credit insurance houses.

Ferrier Hodgson said on Tuesday it had received 40 expressions of interest from various parties, but did not specify what kind. It is believed there have been nibbles at the New Zealand business and Dick Smith's newer secondary brand chain, Move. There could be interest in some Dick Smith property leases. However, several of the almost 400 stores have been called unattractive by other retailers because of their position and size. Major competitor Gerry Harvey said last week he had no interest in the business or any part of its store portfolio. Even if the business can be sold as a going concern, the receiver is looking to restructure and shrink it to a more appropriate and saleable size.

Aggressive store expansion has been blamed in part for the financial collapse of the business, along with the move towards "white label" products and a repositioning away from the traditional electronic componentry goods. All of these led to a build-up in inventory, an increase in debt and ultimately a cash-flow squeeze. At this point, suppliers are still willing to trade with the group, given it has the backing of the banks that now own the Dick Smith business. But it is difficult to see how Dick Smith, which Anchorage bought from Woolworths for $115 million, could fetch this price again. What is being sold in essence is a business infrastructure, a brand, staff and the opportunity to make future profits. While it has a well-known brand, this has been tainted by its financial troubles and, as such, consumers will be concerned about warranties being honoured.

Loading It is also No.3 in the market, with two strong competitors in Harvey Norman and JB Hi Fi. And history is littered with consumer electronics retailers falling by the wayside or shrinking to a shadow of their former selves - including Retravision, Billy Guyatts, Brashes and Vox (which was acquired by Harvey Norman).