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After 39 years in business, high-end fashion retailer Harrolds was placed into liquidation earlier this month with debts of $12.5 million, but a message on the company’s website has alluded to a possible resurrection of the business.
Andrew MacNeill, of SMB Advisory, was appointed liquidator to four subsidiaries of the Melbourne-based Harrolds Group on 3 October 2024 with little fanfare. The liquidator says the companies had ceased trading prior to his appointment.
While MacNeill has yet to indicate whether a sale of the business is being sought, the Harrolds website has been reduced to a single teaser page that boldly describes “a new chapter ahead” and that “something new is coming soon”.
Business News Australia has sought further comment from the liquidator on any future plans for the business.
In a statement following his appointment as liquidator, MacNeill says Harrolds has faced multiple challenges affecting the profitability of the business.
“The director has advised that the decision to appoint a liquidator to the companies comes after significant efforts to navigate the post-COVID retail landscape, which has presented unprecedented challenges for businesses across the sector,” he says.
“Despite best efforts to adapt to the evolving economic environment, a combination of reduced luxury spending, decreased foot traffic, and unfavourable government policies has significantly impacted operations.”
MacNeill reveals that unrelated creditor claims against the Harrolds Group companies currently total about $12.5 million, which is lower than the $16 million figure currently being reported by multiple media outlets. Among the creditors are former employees of the company.
“SMB Advisory urges former employees to contact its Melbourne office to discuss how to lodge a claim for outstanding entitlements they believe they are owed,” says MacNeill.
“SMB Advisory will report to creditors in due course as to the progress of the winding up and advise of the estimated return to creditors.”
The Harrolds companies that have been placed into liquidation comprise Harrolds Femme Pty Ltd, Harrolds Logistics Pty Ltd, JTP Sydney Pty Ltd and Nelson River International Pty Ltd.
Harrolds opened its first store in Melbourne’s Collins Street in 1985, establishing its brand initially as a luxury menswear retailer selling fashionwear and accessories such as Dunhill and Saint Laurent.
The company expanded into women’s fashion in 2017 as the brand opened new stores in NSW and Queensland, as well as an online store in 2020.
The privately owned company was a stockist of high-end fashion brands including Tom Ford, Burberry, Balmain and its own Harrolds Private Label goods.
Harrolds closed its outlet at Crown Casino in 2021 in a restructure during the pandemic following an end to the lease on the site where it had been operating since 1997.
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