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IGA boss vouches for ex-Dick Smith chair

The head of Australia's biggest IGA supermarkets chain has backed Metcash chairman Rob Murray in the face of a call for his resignation.

3 min read

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Source: AAP


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The boss of Australia's largest independent supermarket operator has defended Metcash chairman Rob Murray in the face of calls for him to resign over his former role at Dick Smith.

Ritchies IGA chief executive Fred Harrison has told AAP Mr Murray, the former chairman of the failed Dick Smith chain, is one of the "most ethical and straight shooting" businesspeople he knows.

Mr Harrison said he would be disappointed if Mr Murray had to step down as the chairman of IGA supplier Metcash in the wake of Dick Smith's collapse, as called for by the Australian Shareholders' Association (ASA).

The operator of 82 supermarkets said he has known Mr Murray for the past 20 years through business dealings with suppliers Nestle and Lion, two companies which Mr Murray has formerly headed.

"I have found him to be exceptionally professional and I can only speak volumes of him," Mr Harrison told AAP on the sidelines of the Metcash retail conference on the Gold Coast on Monday.

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"He is one of the most ethical and straight shooting business people I know."

He said Mr Murray's background as a supplier made him a "perfect choice" for Metcash.

"That (Dick Smith saga) will obviously run its course," he said.

"I'd be disappointed (if he were to resign) based on what I see with our dealings with us."

Two other IGA franchise operators declined to comment on the Dick Smith issue when asked by AAP.

Mr Murray became chairman of Metcash in April last year, while he was chairman of Dick Smith - a post he held until January when the iconic Aussie retailer went into administration.

He is one of 10 Dick Smith directors and managers, including former chief executive Nick Abboud, who will face a receiver's public examination into the collapse in the NSW Supreme Court in September.

The ASA is calling for Mr Murray to step down from his Metcash role or to stand for re-election at the company's annual general meeting.

The shareholder group argues that Mr Murray should be accountable for the performance of Dick Smith and said: "When examining a director in a listed company, the behaviour and performance of other companies they are involved with is of vital importance."

Metcash has defended Mr Murray, saying it was confident that its chairman had the capacity to fulfil his role.

Dick Smith administrator McGrathNicol released its report to creditors last week which showed creditors of the collapsed retailer stood to lose more than $260 million.

The administrator's report said it was too early to draw conclusions regarding the nature of any claims that could be brought over the failure of Dick Smith.

Dick Smith receiver Ferrier Hodgson will hold a second creditors meeting in Sydney on Monday.


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