Harris Scarfe’s Rundle Mall store to close
Harris Scarfe’s Rundle Mall store - and 20 other outlets nationwide - will close in four weeks. The local union has blasted the store’s redevelopment as an “unmitigated disaster” as 60 SA jobs are lost.
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Harris Scarfe’s Rundle Mall store will close in four weeks, with receivers Deloitte earmarking the long-lived department store for certain closure.
The SDA, the union which represents retail workers, has told The Advertiser staff were told on Monday the Rundle Mall store would be closed.
Deloitte late this afternoon confirmed another 20 stores across the country will be shut with 44 continuing to trade.
Deloitte Restructuring Services partner Vaughan Strawbridge said the move to close stores was a “difficult decision” but necessary to position the Harris Scarfe business for a successful sale.
Harris Scarfe, which was placed in receivership last month, was founded on Hindley St, city, in 1849 before moving to Grenfell St in 1877.
The company’s former Rundle Mall site was sold and the store demolished, with a new store reopening Rundle Place in 2013.
SDA secretary Josh Peak said the closure was a devastating blow for the 60 or so workers at the city store, who had worked hard over the Christmas period after being told they might soon be out of work.
“Let there be no mistake, the events of today are built on the decisions of the past,’’ Mr Peak said.
“This closure is the result of poor decision-making that has driven its flagship store into an unprofitable position over the past 15 years.
“It is clear now the redevelopment of the site has been an unmitigated disaster for Harris Scarfe.’’
Mr Peak said the closure was a “huge loss” for the state.
“While the previous owners and private-equity firms have questions to answer, we must address the issues in our national economy,” he said.
“Retail figures at their worst levels of the past 30 years. Our Federal Government is asleep at the wheel and needs to stop pursuing policies that hurt our retail sector and start focusing on ones that help it or else more companies will suffer.
“The SDA’s top priority is to ensure that all entitlements are honoured and paid out to all employees who will be out of a job next month.’’
Deloitte had previously estimated about 27 of the company’s 66 stores across the nation would be shuttered.
It is understood that none of Harris Scarfe’s other eight stores across SA is set to be closed at this stage. The other stores are at Gepps Cross, Arndale, Tea Tree Plaza, Oaklands Park, West Lakes, Elizabeth and Noarlunga.
Harris Scarfe was placed in administration on December 11 last year by Allegro Funds, which had taken ownership of it just days before. The company owes about $160 million to creditors, and Deloitte is attempting to sell the business as a going concern.
Mr Strawbridge told The Advertiser last month that there had been strong interest in buying the business.
