2 weeks Ago By David Richards
Cheap As Chips the Alceon Private Equity retailer whose CEO Nick Aboud, was questioned extensively over the failure of Dick Smith the CE retailer that was placed into administration in 2017, with debts of over $400M is struggling with massive losses and falling revenues. Alceon who also operated owned Mosaic Brands a retail group that is currently being liquidated with debts of over $240M. Among their stores were Millers, Rockmans, Noni B, Katies, Autograph, Rivers, W.
Lane, Crossroads, and BeMe. Several months ago, sources were claiming that Cheap As Chips, that trades under Palcove Pty Ltd was shopping for money or a possible sale of the business, now those rumours have resurfaced after the business reported a massive $34.8 million dollar loss in 2024.
The Adelaide based business also reported a $23 million dollar slump in revenues to $101.6 million in the last financial year Vs $124.7M in revenues for 2023 with insiders telling ChannelNews that the business which sell cheap bottom end products “Still struggling in 2025”.
Nick Aboud left leaves the Supreme Court after being questioned about the failure of Dick Smith the former Woolworths owned business. The business that operates bricks and mortar stores in rural Australia, as well as an online operation recently secured a $1.5M overdraft facility and a $600,000 credit card facility.
ChannelNews has been told that the business has been impacted by the surge in demand of online sales of cheap products via Temu. Directors have not said how they are tracking this financial year after the directors of the business claimed in Australian Securities and Investment Commission filings that “As a consequence of the challenging macro-economic environment that sustained improvement, whilst achievable, is likely to be slow”. It was also announced that the business has fully written down the value of the brand name, Cheap As Chips and that they would not be recognising deferred tax assets, they also considered five of their leases to be “onerous while also moving to adjust the “method of cost application” when absorption costing for inventory was considered.
Aboud who was CEO of Dick Smith the CE and appliance retailer when it was placed into administration with debts of over $400 million in 2016, has not said whether the business that has also slashed staff numbers recently from 981 in 2023 to 680 group employees in 2024 is still shopping for a sale of the Alceon linked business following the collapse of several Mosaic Brand retailers in Australia. The Directors of Palcove the operating Company for Cheap As Chips include Mr Phil Green, Tom Krulis, Gary Levin, David Wilshire, and Nick Abboud, who is Managing Director & Chief Executive Officer. A subsidiary of the business is Waimea Pty Ltd which lists as a director Philip Green who is also a director of Alceon Group No 24 Pty Ltd.
Cheap As Chips is listed as part of the Alceon Private Equity, portfolio other businesses in their portfolio include Mosaic Brands that was recently placed into voluntary administration with debts believed to be over $250M. During late 2024 and into 2025 Mosaic Brands, failed after an extensive search failed to find a buyer for its brands. Alceon Private Equity, which had acquired a majority stake in Mosaic Brands, now faces a significant loss due to the company’s collapse.
All Mosaic Brands stores are expected to close by mid-April 2025. At this stage it’s not known what impact the failure of Mosaic brands will have on Cheap as Chips. According to a report by illion a major credit reporting Company Palcove Pty Ltd the operators of the Cheap as Chips business has seen their tangible net worth fall by 81.
15% in 2024 to $2.67M. Sales turnover has fallen 18.
5% while net profit/losses has fallen 2649% due to the $34.8M loss. Net profit margins have also slumped.
The current assets of the business have also fallen by 90.54% during the last financial year.ChannelNews has asked Nick Aboud the CEO of Cheap As Chips for a comment.
We are still waiting for a reply. Below is Nick Aboud doing a promotion interview with runner Torrie Lewis..
