Harris Scarfe has been placed into receivership, just one month after being acquired by private equity firm Allegro Funds.
It follows a similar move after Ginger & Smart was acquired by new owners.
Deloitte Restructuring Services partners Vaughan Strawbridge, Kathryn Evans and Tim Norman were appointed receivers and managers over Harris Scarfe, and a number of associated entities.
The appointment was made by the secured lender to the group.
Operating nationally, but best known in Victoria, South Australia and Tasmania, Harris Scarfe retails bed linen, kitchenware, homewares, electrical appliances, and apparel across 66 stores.
The business employs over 1,800 staff, and has annual sales totalling $380 million.
Strawbridge said trading will continue as normal over the Christmas period and employees will continue to be paid by the Receivers. He also said he was confident there was more than sufficient assets to meet all employees’ entitlements.
The Receivers intend to achieve a sale of the business as a going concern and preserve the employment of as many people as possible.
“Harris Scarfe is a longstanding retail institution. We will be making every effort to secure a future for the business and intend to commence an immediate sale of business process,” Strawbridge said.
The Receivers will honour gift cards and lay-by deposits in full.