Harrolds, a prominent Australian luxury fashion retail scene, has officially entered liquidation after 39 years of operation. The store, once known for its curated selection of high-end fashion, footwear, and accessories, ceased trading earlier this month, prompting the appointment of Andrew MacNeill from SMB Advisory as the liquidator.
Founded in 1985, Harrolds was celebrated for offering collections from prestigious international and local designers, including Tom Ford, Manolo Blahnik, and Alexander McQueen. However, recent challenges in the retail landscape, exacerbated by post COVID-19 pandemic has led to its financial decline.
The downfall of the company can be attributed to various factors like changing economic conditions that has reduced luxury spending, diminished foot traffic with the emergence of online shopping, and unfavorable government policies severely impacting operations.
Unrelated creditor claims an approximate of $12.5 million against the company. As the liquidation process unfolds, former employees are encouraged to reach out to SMB Advisory’s Melbourne office to file claims for any outstanding entitlements.
In a bid to generate revenue before the closure, Harrolds held a warehouse sale prior to shutting down both its flagship stores in Sydney and Melbourne. As Harrolds’ liquidation marks the end of an era, it serves as a reminder of the challenges faced by the retail sector in the wake of the pandemic, affecting even established luxury brands. [1]