Department store chain Harris Scarfe goes broke after 169 years of business – putting hundreds of jobs at risk
- The linen and homewares business employs 1,800 staff across 66 stores
- Deloitte Restructuring Services were named voluntary administrators
- The business will continue operating as normal over the Christmas period
Australian retailer Harris Scarfe has gone into voluntary administration.
The business, which is known for selling bedding, linen and homewares, employs 1,800 staff across 66 stores nationwide.
Deloitte Restructuring Services were named voluntary administrators on Wednesday.
They hope to re-purpose and sell the business and retain as many staff as possible.
The chain is believed to make about $380million annually.
Australian retailer Harris Scarfe has gone into voluntary administration (Pictured: Rundle Place in Adelaide with a Harris Scarfe store on the second floor)
Harris Scarfe, which has been operating for 169 years, will run as usual over the Christmas period and all employees will continue to be paid.
Administrator Vaughan Strawbridge said he is certain the assets from the company will be more than enough to continue paying all staff in the coming weeks.
‘Harris Scarfe is a longstanding retail institution,’ he said.
‘We will be making every effort to secure a future for the business and intend to commence an immediate sale of business process.’
All gift cards will be honoured for the time being.
Queensland University of Technology retail expert Dr Gary Mortimer told news.com.au the retailer would find it difficult to create strong relationships with buyers because it is ‘stuck in the middle.’
‘At one end of the market we’ve got cheap and cheerful with Kmart still going strong and a revitalised Big W,’ he said.
‘And at the other end there’s David Jones, which is still struggling to find form, and Myer also.
‘If you’re stuck in the middle and you’re constantly discounting, all you’re doing is eroding profit and conditioning consumers to never pay full price when they walk into your store.’
Barry Du Bois, Kylie Gillies, Shaynna Blaze and Poh Ling Yeow pose at the Harris Scarfe Spring Summer 2019 Season Launch
Harris Scarfe, which has been operating for 169 years, will run as usual over the Christmas period and all employees will continue to be paid