Australian luxury fashion retailer Harrolds, renowned for attracting celebrities and showcasing some of the world’s most prestigious designers, has entered liquidation leaving behind debts of $16 million.
The company, which operated for nearly 40 years, was placed into liquidation in early October. Founded in 1985, the company opened its first store in Melbourne and became known as the Australian destination for high-end brands such as Tom Ford, Saint Laurent, Balmain and Burberry.
As a Greek family-owned business, Harrolds held the distinction of being Australia’s only privately owned luxury department store.
Harrolds’ managing director Ross Poulakis said it was with “deep regret” the company had made a “difficult decision” to put the luxury retailer into liquidation.
“Despite our best efforts to adapt to the evolving economic environment, a combination of reduced luxury spending, decreased foot traffic, unprecedentedly high levels of CBD office vacancies and extremely unfavourable government policies has significantly impacted our ability to sustain operations,” Poulakis told The Daily Telegraph.
“Unfortunately the retail sector in Australia has been hit hard and like many other retailers before us in this period we have had to close our doors.”
SMB Advisory has been appointed as liquidators, with nearly 90 creditors collectively owed over $16 million. An initial report submitted to creditors and filed with ASIC reveals a number of high-profile names among the creditors.
Notably, Victoria Beckham’s company is owed $30,000, while two entities associated with Tom Ford have debts totaling $33,000. Additionally, American designer Thom Browne is listed with a significant debt of $253,000.
Other debts include just over $1,000 owed to Versace and $853 due to Stella McCartney.
Source: The Daily Telegraph.
