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. 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.
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 former employees to contact its Melbourne office to discuss how to lodge a claim for outstanding entitlements they believe they are owed," the statement said.
Harrolds' website after going into liquidation. (Harrolds)"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."Harrolds had been operating for nearly 40 years, with both bricks-and-mortar outlets, including in Melbourne and Sydney, as well as a more recent online store.Its social media channels have not been deactivated, and its website is still live with a banner reading "a new chapter" scrolling across the home page.
