Iconic luxury fashion retailer Harrolds goes into liquidation

Prominent Australian luxury fashion retailer Harrolds has entered liquidation with outstanding debts exceeding $16 million. The family-owned business, known for high-end clothing and accessories, operated for nearly 40 years with flagship stores in Sydney and Melbourne. However, challenges in the post-COVID economy forced its closure.

Harrolds entered liquidation at the start of October, with SMB Advisory appointed as liquidator. The total liabilities amount to $16.3 million, with creditors spanning both local and international luxury brands. Major creditors include global names such as Victoria Beckham (owed $30,516.85), Tom Ford ($34,254.34), Vetements ($51,898.91), and several larger creditors like Thom Browne ($253,347.83) and Stefano Ricci ($244,482.00). The largest claims include NAB and the Australian Taxation Office, both owed around $6.6 million.

Among the Australian creditors, notable claims include Anna Quan ($815.80), Song for the Mute ($20,213.00), and Chusette ($6,494.40). Over 70 entities are listed as creditors in total.

Harrolds’ total assets included $209,073 in cash and receivables of $13.3 million at the time of liquidation. Despite efforts to sustain the business post-pandemic, factors such as reduced consumer spending, decreased foot traffic, and unfavourable government policies significantly impacted operations. Harrolds continued to import luxury fashion items, hosting a made-to-measure session in September, just weeks before liquidation. Approximately $80,000 worth of goods, including suits and accessories, were received for this event, and deposits exceeding $14,000 were collected.

The liquidator, Andrew MacNeill of SMB Advisory, plans to investigate whether Harrolds traded while insolvent. Initial findings indicate that most stock was sold before liquidation, with proceeds going into Harrolds Group accounts. However, some creditors have expressed frustration, claiming their stock remains unaccounted for. MacNeill has stated that any related-party loans will be reviewed, though no recovery is expected from these accounts.

As Harrolds enters its wind-down phase, creditors await further updates. A comprehensive report from the liquidator is expected by January. Meanwhile, Harrolds’ founder, John Poulakis, and his son, director Ross Poulakis, remain largely unavailable for comment.