Workers in limbo as stores struggle

CAMERON WHITELEY

THE jobs of about 100 Tasmanian Harris Scarfe employees are unclear as the company's future hangs in the balance.

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

The retail department store chain has five outlets across Tasmania — Hobart CBD, Moonah, Launceston, Devonport and Ulverstone.

Paul Griffin, the Shop, Distributive and Allied Employees

Association state secretary, said staff were shocked to hear the news and were worried about the implications to their jobs.

Mr Griffin said the association was having discussions with the receiver about the next steps, and hoped the chain would be able to keep trading.

“It is certainly very concerning, especially at this time of year, people have a lot of [financial] commitments and they are concerned about what their futures might hold,’’ he said.

“It came as a shock and I have not seen any party who has indicated they were aware of any changes.”

Long-time Harris Scarfe customer Vanessa Oates, of Allens Rivulet, said it was disappointing to hear about the chain’s potential closure.

“It’s pretty sad actually, and we don’t have lots of shops to choose from here,’’ she said.

“It’s a bit of an institution here.”

She said she mainly shopped at Harris Scarfe for clothing and homewares, and said her mother was also a loyal customer.

Matthew Wright, from real estate agency Knight Frank, said the potential closure of Harris Scarfe would have a big impact on the Hobart CBD.

Mr Wright said there had been significant recent interest from national and international retailers of a similar size to Harris Scarfe about potentially coming to Tasmania.

He said he was confident a new retailer would be found should Harris Scarfe’s current Collins St site be vacated.

Deloitte Restructuring

Services partner Vaughan Strawbridge said on Wednesday that 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.

ALMOST a third of Australia’s biggest companies didn’t pay any tax last year despite soaring commodity prices driving the overall take up by $6.6 billion.

The Australian Taxation

Office’s tax transparency report looked at more than 2200 Australian and foreign-owned companies with turnover above $100 million.

More than 1500 of the companies paid a combined total of $52.3 billion in tax.

However, 710 firms didn’t have a tax liability in 2017/18. Paying minimal or zero tax can be a result of companies making a loss, utilising losses from other years or having projects in start-up phase.

ATO deputy commissioner Rebecca Saint said companies consistently reporting sustained losses raised a red flag.

“The community should be reassured that we closely scrutinise the tax affairs of the largest companies,” she said.

She said there was a positive trend around companies stopping generating accounting losses and moving to offset profits through losses in previous years.

“We expect many companies to exhaust these losses and begin paying income tax in the coming years,” Ms Saint said.