Harris Scarfe – one of South Australia’s oldest retail
chains – entered voluntary administration today after being put into
receivership by a creditor.
The move comes less than a month after the company traded to Allegro Funds, a Sydney-based private equity firm known to turn around struggling businesses.
In that deal, for an undisclosed sum, Greenlit Brands also sold Allegro Best and Less, Postie and Debenhams’ Australian arm.
Combined the retailers operate out of 322 stores nationally and employ 6100 people.
Following the acquisition, Allegro immediately announced its intention to close Australia’s only Debenhams store, which only opened in late 2017, in Melbourne’s Collins Street.
Harris Scarfe for sale
With 66 outlets, Harris Scarfe has more than 1800 people
on its payroll.
Its annual revenue last year was $380 million.
Deloitte Restructuring Services’ Vaughan Strawbridge, Kathryn Evans and Tim Noonan are the receivers, called in by a secured lender.
BDO Australia’s Andrew Sallway and Duncan Clubb have been
appointed voluntary administrators.
It is hoped the retailer will sell as a going concern and
no stores would need to close.
Mr Strawbridge said that during the sale process, Harris
Scarfe would trade…