Harrolds, a renowned Australian luxury fashion retailer, has entered liquidation, owing creditors over $12 million. The firm’s four divisions were placed into liquidation in early October due to challenges posed by the post-pandemic economy, according to liquidator SMB Advisory. The statement highlighted that despite attempts to adapt, the retailer faced a decline in luxury spending, decreased foot traffic, and unfavourable government policies.
Among the creditors are former employees, collectively owed approximately $200,000. SMB Advisory is encouraging these former staff to contact their Melbourne office to initiate claims for their outstanding entitlements. Harrolds operated for nearly four decades, with physical stores in Melbourne and Sydney, alongside a recent online platform.
Although the company has collapsed, its social media remains active, and its website displays a banner stating “a new chapter.” SMB Advisory will keep creditors informed about the liquidation process and the anticipated returns. The collapse marks a significant loss in the Australian luxury market, reflecting wider struggles within the retail sector.