Luxury Australian fashion retailer goes into liquidation owing $12.5 million to creditors

Australian luxury fashion retailer Harrolds has collapsed while owing more than $12 million.

The four entities that make up the Harrolds Group were placed into liquidation at the start of October.

In a statement provided to 9News, liquidator SMB Advisory put the department store’s collapse down to the difficult post-pandemic economy.

A shoe display at a Harrolds store.
A shoe display at a Harrolds store. The luxury retailer has collapsed and gone into liquidation. (Harrolds/Instagram)

It said Harrolds owed its creditors more than $12 million.

“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,” the statement read.

“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.  

Blazers and trousers on display in a Harrolds store.
Liquidators say the company owes creditors $12.5 million. (Harrolds/Instagram)

“At present, unrelated creditor claims against the Companies total approximately $12.5m.”

Among those creditors are former employees, who are reportedly owed almost a combined $200,000.

“SMB Advisory urges…

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