Australian retailer, Harris Scarfe, is rescued from collapse from Spotlight Group.
Harris Scarfe filed for voluntary administration in December 2019.
Deloitte announced the acquisition, with four potential buyers amongst the overall winning Spotlight Group. The Group has been granted exclusive buying opportunity.
The announcement said that Spotlight is a “highly experienced Australasian retailer with a large property portfolio ideally suited to enabling future growth for Harris Scarfe employees and all stakeholders.”
The Australian retailer closed 21 stores across the country due to the administration in late December. However, this acquisition from Spotlight Group may just save the remaining 44 stores from closing. This can save up to 1,400 jobs.
Administrator, Vaughn Strawbridge said there is still a lot of work to do before everything is finalised – “to finalise the transaction and we will be working with the Spotlight Group and the Harris Scarfe leadership team to make this happen.”
“We are hopeful all of the 44 stores will be retained under the sale, but ultimately this will be dependent on how the transaction progresses over the next couple of weeks,” Strawbridge explained.
Harris Scarfe blamed poor sales and a downturn in consumer confidence as the catalyst for its difficulties.
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