Harrolds collapses into administration owing millions

Luxury Australian fashion retailer Harrolds has gone bankrupt with more than $16 million in debt after 39 years.

SMB Advisory was appointed as curator on October 3.

More than 90 creditors are owed money, including Victoria Beckham’s company, which is owed $30,000, and two of Tom Ford’s companies, with a combined debt of $33,000, according to documents filed with ASIC.

Harrols also owes more than $2.3 million to the Australian Taxation Office, while its employees owe $190,000 in duties.

Founded in 1985 on Melbourne’s Collins Street, Harrols was Australia’s only privately owned department store and expanded to outlets in Melbourne, Sydney and the Gold Coast.

In July, Harrols closed its stores in Sydney and Melbourne, following the previous closure of its Gold Coast branch in 2021.

“We have had to take many actions over the past twelve months to mitigate the impact of Covid-19 on our business nationally, including reducing operating costs and seeking to negotiate revised lease agreements,” said Ross Poulakis, managing director of Harrolkis, after the closure of the Gold Coast Outlet.

The company had previously announced plans to move into the new Westfield development on Sydney’s Market Street and launch an immersive retail experience in Melbourne.

However, now that the company is bankrupt, it is uncertain whether these plans will still go ahead.

Harrols also announced in July that it would temporarily close its online store.

Luxury Australian fashion retailer Harrolds has gone bankrupt with more than $16 million in debt after 39 years.