Victorian Harris Scarfe stores to close
Harris Scarfe has revealed it will be shutting down 21 stores across Australia after the 170-year-old retail chain was placed into receivership. These are the Victorians stores that will be closing their doors.
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Department store Harris Scarfe will shut 21 shops — almost one in three — over the next month in a move which will result in more than 400 job losses.
The move to shut stores, including three in Victoria, follows the 170-year-old retail chain being placed into receivership last month.
Accounting firm Deloitte, which was appointed receiver, had been widely expected to shut stores as it works to restructure the business in the hope of finding a buyer.
Deloitte Restructuring Services partner Vaughan Strawbridge on Monday said the decision to close stores was difficult but necessary.
“We have continued to trade the business since our appointment and this has been well supported by loyal employees and customers, so this has been a difficult decision but one necessary to position the Harris Scarfe business for a successful sale and continued operation,” he said.
“Our review of the store network included a range of factors, including past and likely future profitability.
“Going forward, we certainly remain focused on running the broader store network, and selling the business as the best outcome for remaining employees and suppliers.”
The store closures would affect 440 employees including 88 full-time, 128 part-time and 224 casual staff, Mr Strawbridge said.
“All efforts are being made to redeploy affected staff around the rest of the store network, and all staff that leave the business will receive all wages and entitlements in full on the closure of individual stores,” he said.
Harris Scarfe, which sells bed linen, kitchenware, homewares, electrical appliances and apparel, will have 44 stores employing about 1380 people after the closures.
Its Victorian store footprint will shrink from 24 to 21 as regional outlets in Bendigo and Mildura are closed, along with the store at Box Hill, in Melbourne’s east.
Eight stores, including the Albury outlet, will be shut in New South Wales, six in Queensland, two in Western Australia, one in South Australia — the flagship Rundle Mall location — and one in the Australian Capital Territory.
Following the closures, about half of Harris Scarfe’s outlets will be in Victoria as its Queensland footprint shrinks from eight to two and its NSW network from 13 to five.
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Harris Scarfe was put in voluntary administration less than a month ago after it was sold to Sydney-based Allegro Funds. A private equity group, Allegro specialises in turning around struggling businesses.
The move to place it into voluntary administration has put off-side suppliers and landlords, who are set to take haircuts on what they are owed.
Allegro bought Harris Scarfe from Freedom and Fantastic Furniture owner Greenlit Brands in November in a deal that also handed the private equity firm Best & Less.
That chain is not affected by the Harris Scarfe administration, but both businesses have struggled for the past decade as they confront fast-fashion interlopers Zara, Uniqlo and Hennes & Mauritz, trading as H&M, along with a rejuvenated Kmart and the rise of online shopping.
A string of retailers have collapsed or been forced into major restructures during the past three years, including discount retailer Dimmeys, menswear chains Roger David, Ed Harry and Rhodes & Beckett, and footwear groups Shoes of Prey and Payless Shoes.
Others include fashion retailers Marcs, David Lawrence, Herringbone and Bardot, and handbag maker Oroton.
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