Harris Scarfe is an Australian retailer that sells a wide range of homewares and apparel in Australia. The range includes bed linen, bedding, bathroom linen and accessories, kitchenware, home decor, homewares, tableware, electrical appliances, kitchen appliances plus clothing & apparel for men and women. It was founded in 1849 in Adelaide, South Australia and has more than 50 stores nationally.
In 2015, ownership of Harris Scarfe was transferred to Steinhoff Asia Pacific, an international retail and manufacturing conglomerate listed on the Frankfurt stock exchange. In December 2017, Steinhoff's was accused of overstating its profits and the share price dropped by 90% The company then entered a period of intense asset sell off, which resulted in Harris Scarfe being sold to Allegro Funds in December 2019. Shortly after, Allegro put Harris Scarfe and its related entities into administration. Spotlight Group then bought the business out of administration in April 2020.
History
Early history
Harris Scarfe traces its history to 10 February 1849, when George Peter Harris and John C. Lanyon, arrived in Adelaide, South Australia on the ship Candahar and established a hardware and ironmongery business on Hindley Street. Lanyon left the partnership on 22 February 1855 and returned to London, where he opened a buying house for Geo. P. Harris and other businesses in South Australia. Additional partners, George Scarfe and Richard Smith, joined the business in 1866 and the business name "Geo. P. Harris, Scarfe & Co." was adopted in December that year. They had premises on the east side of Gawler Place, midway between Rundle and Grenfell streets, where Allan's building now stands (58-60 Gawler Place). A new four-storey building, on a freehold property between Rundle and Grenfell streets, was erected behind their old (leased) property in 1929.
Harris Scarfe grew to become a major supplier of a broad range of household, agricultural and industrial items. Besides conducting its retailing businesses, Harris Scarfe manufactured leather goods, including saddlery and luggage, as part of a wholesaling operation. Notably, during World War II, when the federal government enforced price controls, it used the Harris Scarfe catalogue as the price guide.
Rainbow Cycles Rainbow bicycles, mostly made in South Australia by Harris Scarfe, were sold in their stores in both South Australia and, through a partnership with Sandovers, in Western Australia. They were first marketed in Western Australian stores in 1934. In 1936 sponsored rider Billy Read crossed Australia on a Rainbow, and in the 1940s and 1950s Sandovers were an enthusiastic sponsor of local road and track cyclists. Most of the bikes were low priced utility models, however sponsored riders in Perth were sent to Aussie Cycles by the Rainbow coach Ossie Prowse, where they would be measured for custom built Aussie bikes finished with Rainbow branding.
1970s–1980s
In 1971, Baradeen Quest, a subsidiary of Investment & Merchant Finance Corporation (IMFC) made a successful takeover bid for Harris Scarfe, which was listed on the Australian Securities Exchange at the time.
Charles Davis, a listed Tasmanian company controlled by Donald Trescowthick, acquired control of Harris Scarfe in 1976. Trescowthick focused Harris Scarfe's activities on its retailing business, developing a full line department store model, while the industrial products outlet at Mile End evolved to become Harris Scarfe Industrial (trading as Harrys Hardware), a large hardware retailing business. There were multiple small adjacent shops such as paint, power tools, garden.
The success of Harry's led Harris Scarfe's parent company, Charles Davis Limited, to acquire other hardware retailers, including Lloyd's in South Australia, Campbell's in Queensland, and McEwans in Victoria and New South Wales. In 1989, these hardware businesses were sold in a management buyout, and acquired by Bunnings in 1993.
1990s In the 1990s, Harris Scarfe entered an era of unprecedented national growth. It expanded beyond its large department store in Rundle Mall into smaller format suburban and regional shopping stores. Harris Scarfe also acquired full-line department store sites from other retailers who were rationalising their store networks including David Jones (Cairns, Townsville and Macarthur Square NSW), Myer (Colonnades), John Martin's (Arndale and Elizabeth), Stirlings in Western Australia (Albany, Bunbury and Geraldton), FitzGerald's in Tasmania and Melbourne (Hobart, Moonah, Eastlands, New Norfolk, Launceston, Ulverstone, Devonport, Burnie and Forest Hill) and Centre Fair (Shepparton). By 1995, Harris Scarfe had become Australia's third largest department store retailer, with 38 stores, and trading in all states of Australia.
The company ran into trouble during the late 1990s due to rising debts and management issues. In April 2001, the business was placed in receivership. Unsecured creditors were owed $93 million, and the company was $50 million in debt. In June 2002, the company's former chief financial officer, Alan Hodgson, was sentenced to six years in jail, on multiple counts that included giving false information to the Australian Securities Exchange, (ASX) and failing to act honestly as a company officer.
2000s In 2001, Harris Scarfe listed on the ASX. In the same year, the company fell $160 million into debt, resulting in the owners, the Trescowthick family, losing $31.5 million. The government initially considered pressing charges against chairman Adam Trescowthick, but later dropped the case.
In 2002, the company started a revitalization program. The store network was remodelled with new products, layouts and new branding. As a result, Harris Scarfe soon began to enjoy record growth. By 2007, Sydney-based Momentum Private Equity acquired an $80 million majority stake in the company.
Over a six-month period at the end of 2003, Harris Scarfe made certain representations on a number of items in its catalogues in relation to pricing. Harris Scarfe admitted to the Australian Competition & Consumer Commission (ACCC) that representations in its promotional advertising may have misled consumers.
Again in 2007 Harris Scarfe was investigated by the Australian consumer watchdog who sued the department store in the Australian Federal Court over allegedly false promotions for its sales in October 2006. The ACCC alleged that the advertising was misleading because Harris Scarfe was not offering what it advertised:
A discount off all goods in its stores. A minimum of 20% off all goods in its stores.
The ACCC also alleged that the catalogue included images of products under banners stating a specific discount when some of those goods were not discounted by the stated percentage.
In 2009, the Federal Court, Adelaide has declared that Harris Scarfe Australia Pty Ltd misled consumers by representing in a catalogue that certain advertised items were discounted by a specific amount when in fact they were discounted by less than that amount, or were not discounted at all.
Harris Scarfe CEO, Robert Atkins, was sacked for gross misconduct from the top post at Harris Scarfe in March 2009 after eight years at the helm of the department store. He played a significant role in the restructuring of retail trading hours in South Australia and in the revitalization of the state's premium retail precinct as chairman of the Rundle Mall Management Authority. Robert Atkins died in January 2010.
After Robert Atkins' dismissal from Harris Scarfe, Joe Barberis was named managing director of the retailer in February 2009 until September 2014. Graham Dean, previously Myer group general manager of Electrical, was named CEO of Harris Scarfe.
2010s In 2012, Momentum Capital sold the business to Pepkor, a South African private equity firm. That year, Kyly Clarke also became the face of Harris Scarfe's fashion home brand 'Boutique@hs'.
In 2014, Steinhoff Asia Pacific (later renamed Greenlit Brands) acquired Pepkor and this included Harris Scarfe.
In January 2014, General Manager of Harris Scarfe Daniel Nikoleaff was demoted to Area Manager of South Australia. Nikoleaff was replaced by Rebecca Peterson previously CEO of the Lovisa jewellery stores.
In October 2013, Harris Scarfe officially launched Simply Vera, by Vera Wang which is designed by Vera Wang who is based in New York City. The collection comprises a range of contemporary women's fashion, accessories, bed and bath collections and home fragrances.
Harris Scarfe's home brand 'Bulls Head' jeans were found to have azo dyes classed as carcinogens in the pocket linings. The jeans were recalled in July 2015.
In 2017, Harris Scarfe also collaborated with Shaynna Blaze, an interior designer from The Block on bed linens, homewares, accessories and apparel.
In October 2017, just before the Steinhoff corruption scandal unfolded, Steinhoff International appointed former The Good Guys boss Michael Ford, to oversee its Australasian operation. He had left behind a retailer that had to be significantly restructured due to cash flow problems and a lack of stock in the business.
British fashion brand Debenhams granted exclusivity to Harris Scarfe for their launch in Australia in February 2017. The arrangement was short lived and Harris Scarfe parted ways with Debenhams in November 2019. Harris Scarfe's relationship with Debenhams "played a key role in the insolvency of Harris Scarfe which would fall into administration in December 2020."
During April 2018, they launched a new collection with Jamie Durie, TV personality The Outdoor Room named Jamie Durie by Ardor which is a casual bed linen product range.
Channel Seven Morning Show presenter Kylie Gillies was named Harris Scarfe's fashion ambassador in August 2018.
In December 2019, parent company Greenlit Brands sold both Harris Scarfe and Best & Less to Australian private equity firm Allegro Funds.
On 11 December 2019, Harris Scarfe under General Manager Rebecca Peterson, entered voluntary administration, forcing it back into receivership with Deloitte Restructuring Services partners taking over management of the business. The retailer reported $380 million in annual sales earlier in the year. At the time, Harris Scarfe had 66 stores employing 1800 staff. In response, the Shop, Distributive and Allied Employees Association labour union said that they would be filing a complaint with the Fair Work Commission because they were not informed in advance. Deloitte claims Harris Scarfe has "more than sufficient" assets to pay all staff entitlements.
2020s In January 2020, Harris Scarfe announced it would close 21 of its 65 stores, resulting in the loss of 440 jobs. 1380 staff would remain in the 44 stores still in operation. The closures consist of one in South Australia (flagship) and in the Australian Capital Territory, two in Western Australia, three in Victoria, six in Queensland, and eight in New South Wales. As of 2 February 2020, 20 stores have closed, with the store in Earlville, Cairns, being spared from closure, leaving 45 stores, being three in Australian Capital Territory, three in Queensland, five in Tasmania, five in New South Wales, eight in South Australia and 21 in Victoria.
During this time Harris Scarfe's credit card services and interest free offers were no longer honored or available.
On 3 March 2020, it was announced that Spotlight Group will purchase the remaining stores.