Big W exec quits, joins Dick Smith
The appointment sparked speculation changes were afoot in the electrical retailer’s leadership ranks, however Dick Smith quickly dismissed the suggestion.
“There are no plans to replace Nick Abboud as CEO of Dick Smith. The entire Dick Smith team is committed to driving the business forward,” a spokesperson from Dick Smith said.
“He [Pereira] is a great, senior hire who brings fantastic experience and capabilities to the business. We are excited about the impact his appointment will have.”
Pereira was head of trade and family entertainment at Big W and previously lead Myer’s electrical and entertainment division.
“Big W thanks Algy for his valued contribution over the past two years and wishes him well for the future,” Big W’s parent company Woolworths said in a statement on Wednesday.
On Monday, Dick Smith’s shared price plummeted after the retailer announced to the market it had scrapped its profit guidance on the back of weak sales in October and November.
The retailer is undertaking a review of its inventory levels conducted by external consultants and will take a non-cash impairment charge of $60 million.
A further impairment may be required, depending on Christmas trading.
In October Dick Smith slashed up to $8 million off its full year net profit guidance, saying it would fall to between $45 million and $48 million.
The news spooked investors, who pushed the stock down by 70 per cent in early trade. The shares closed 38 cents, or 57.6 per cent, weaker at a record low of 28 cents.
Today, Dick Smith shares were 6.5 cents higher at 41.5 cents at 1054 AEDT.
Read more: Question mark over Dick Smith’s future