Harris Scarfe in administration as consumer sentiment smashes retailers

Harris Scarfe in receivership again as retailers struggle with bleak consumer sentiment.

Harris Scarfe was placed in voluntary receivership previously in 2001 owing $93m to unsecured creditors and $50m in company debt.

Department store Harris Scarfe has been placed in receivership as the nation’s struggling retail sector reels with another blow to confidence just two weeks before Christmas.

In jeopardy are more than 1800 jobs across 66 stores. It’s likely to trigger a fire sale of Harris Scarfe’s stock that could severely dent profit margins for rival retailers as they battle to compete.

It is the second time the retailer has failed. Harris Scarfe was placed in voluntary receivership in 2001 owing $93m to unsecured creditors and $50m in company debt.

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On Wednesday, the business trading as Harris Scarfe was placed into receivership, after the appointment of voluntary administrators.

Deloitte Restructuring Services partners Vaughan Strawbridge, Kathryn Evans and Tim Norman were appointed receivers and managers over Harris Scarfe, and a number of associated entities.

The appointment was made by the secured lender to the group.

On Wednesday, the business trading as Harris Scarfe was placed into receivership, after the appointment of voluntary administrators.

Operating nationally, but best known in Victoria, South Australia and Tasmania, Harris Scarfe retails bed linen, kitchenware, homewares, electrical appliances, and apparel across 66 stores. The business employs more than 1800 staff and has annual sales totalling $380m.

Mr Strawbridge said trading will continue as normal over the Christmas period and employees will continue to be paid by the receivers.

He said he was confident there was were sufficient assets to meet all employees’ entitlements.

The receivers said their intention is to sell the business as a going concern and preserve the employment of as many people as possible.

“Harris Scarfe is a longstanding retail institution. We will be making every effort to secure a future for the business and intend to commence an immediate sale of business process,” Mr Strawbridge said.