Harris Scarfe chain put into receivership

JOHN DAGGE

DEPARTMENT store chain Harris Scarfe has collapsed, putting more than 1800 jobs at risk and casting a new cloud over the crucial Christmas trading period for the nation’s retail sector.

Accounting firm Deloitte announced yesterday that Harris Scarfe had been put into receivership just two weeks before Christmas.

The latest hit to the retail sector comes less than a month after the 170-year-old retail business, popular with households for its generous discounts, was sold to Sydneybased Allegro Funds.

The private equity group, which specialises in turning around struggling businesses, placed Harris Scarfe into voluntary administration, triggering the appointment of receivers.

Harris Scarfe sells bed linen, kitchenware, homewares, electrical appliances and apparel across a network of 66 stores, including five in Tasmania — Hobart, Moonah, Launceston, Devonport and Ulverstone.

Deloitte Restructuring Services partner Vaughan Strawbridge said trading would continue as normal over the Christmas period and employees will continue to be paid by the receivers.

Mr Strawbridge said the receivers would look for a buyer for the business and work to preserve as many jobs as possible.

“We will be making every effort to secure a future for the business and intend to commence an immediate sale of business process,” he said.

Allegro bought Harris Scarfe from Freedom and Fantastic Furniture owner Greenlit Brands late last month in a deal which also handed the private equity firm Best & Less.

It is not affected by the Harris Scarfe administration, but both businesses have struggled over the past decade as they confront fast-fashion interlopers Zara, Uniqlo and H&M, a rejuvenated Kmart and the rise of online shopping.

A string of retailers have collapsed or been forced to undergo major restructures over the past two years including fellow discount retailer Dimmeys.