Harrolds collapses into administration owing millions

Luxury Australian fashion retailer Harrolds has collapsed into administration owing more than $16million after 39 years in business.

SMB Advisory were appointed as liquidators for the business on October 3. 

More than 90 creditors are owed money, including Victoria Beckham’s company, which is owed $30,000 and  two of Tom Ford’s companies, with a combined debt of $33,000.

According to documents lodged with ASIC, Harrolds also owes the Australian Taxation Office more than $2.3million, while employees are owed $190,000 in entitlements.

Founded in 1985 on Melbourne’s Collins Street, Harrolds was Australia’s only privately-owned department store, and grew to have outlets in Melbourne, Sydney and the Gold Coast.

In July, Harrolds closed its stores in Sydney and Melbourne, following the earlier closure of its Gold Coast outlet in 2021. 

‘We have had to pull many levers during the last 12 months to mitigate the impacts of Covid-19 to our business nationally, including reducing operating expenses and attempting to negotiate revised rental agreements,’ said Harrolds’ managing director Ross Poulakis at the time.

The company had previously announced plans to move into Westfield’s new development on Market Street in Sydney and to introduce a new immersive store experience in Melbourne. 

However, it is now unclear if these plans will proceed due to the company’s recent liquidation. 

Harrolds also announced in July it was closing its online store temporarily in July.