Seeing reports that Harris Scarfe has been placed into receivership, but will continue to trade with no plans to close.
Some reports blame the economy, others the decline in 'high street' shopping.
Harris Scarfe in Receivership - Continuing to Trade
GG57 on 11/12/2019 - 14:26
Last edited 12/12/2019 - 18:01 by 1 other user
Last edited 12/12/2019 - 18:01 by 1 other user
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Just one month after being acquired by private equity firm Allego Funds, department store Harris Scarfe has appointed Deloitte Restructuring Services as receivers and BDO as voluntary administrators.
That's… interesting. I wonder if that was a move to secure the bag, so to speak, by the previous owners, or if the private equity firm bought at a fire sale price knowing this was a near certainty.
100% this
Most likely the latter, probably going to wind up the assets and will indicate to the market that they thought they could turn it around. Masked asset-stripping which is not necessarily illegal.
Harris Scarfe was one of a bundle of brands Allegro acquired when they bought the general merchandise division of Greenlit Brands a couple of months ago. Clearly they had no desire/intention to keep the Harris Scarfe part of the deal
Apparently there are sufficient assets to meet employee entitlements, and gift cards and lay-bys deposits will be honoured.
But, without panicking, I would be using those gift cards and picking up the lay-bys asap.
Harris Scarfe have a pretty long history of going bust. I've never really seen their stores busy.
Their trading model is terrible. They didn't adapt their model at all, this was bound to happen eventually. Is the best model Hight price, super specials or lower prices every day?
Walked into a Harvey Norman in the past 10 years? There's a terrible trading model.
Yes I have, they certainly don't high/low their customers by 80%
@Soluble: Yes, they prefer high pressure sales techniques from the 1980s to get customers to pay full RRP or be sold an item they'll get the biggest commissions on.
"…a pretty long history of going bust."
I haven't looked too deeply, but I'm seeing statements re 170 years of business, and going into receivership in 2001 and 2019.
Are there other matters to consider?"A former Harris Scarfe accountant, Anthony Wight, yesterday testified at the Adelaide Magistrates Court committal hearing of Adam Trescowthick that the falsification of accounts started five years before Trescowthick became executive chairman."
"Prosecutors have alleged he instructed Harris Scarfe's chief financial officer, Alan Hodgson, to falsely inflate profits to about $36 million between 1998 and 2000.
But Mr Wight said he was first directed by Hodgson to falsify accounts in mid-1994, five years before Trescowthick."
There is also a bit of mental overlap with Poppy cosmetics, Poppy King being Trescowthick's partner while Poppy went bust.
I assume this led to the 2001 receivership?
Any wonder, they're always selling Dunlopillos at half RRP - must be costing them a fortune! /s
Some reports blame the economy…
A failing business blaming the economy? Sacrebleu!
others the decline in 'high street' shopping.
Unless they mean that fewer people are shopping in their store located on High Street… Tar-jei anyone?
Sales dont seem that good today. I expect later sales will be much greater, they're just trying to offload as much as possible while still making some profit.
https://www.insideretail.com.au/news/harris-scarfe-appoints-…