Collapsed department store Harris Scarfe is SAVED from closure with a surprise retailer throwing up its hand to buy the chain - saving hundreds of jobs
- The Spotlight Group could finalise a deal to buy Harris Scarfe by as early as April
- Harris Scarfe announced they were going into receivership in December 2019
- Spotlight Group said transaction will progress based on deals with landlords
Hundreds of jobs at Harris Scarfe could be saved after another business saves the company from closure.
The Spotlight Group, who owns Spotlight and Anaconda, could finalise a deal to take over the retailer by as early as mid-April.
Harris Scarfe announced they were going into receivership in December 2019.
The retailer said in January they intended to close 21 of their 66 stores across South Australia, Queensland, Victoria and Tasmania.
The Spotlight Group, who own stores such as Spotlight and Anaconda, could finalise a deal to take on Harris Scarfe by as early as mid-April (stock)
The Spotlight Group has won the exclusive rights to deal with the chain and it appears they intend to keep many of their 1,300 employees.
Receivers said the rights were granted following 'vigorous due diligence'.
Vaughan Strawbridge, one of the receivers from Deloitte, said: 'There is still a lot of work we need to do together to finalise the transaction and we will be working with the Spotlight Group and the Harris Scarfe Leadership team to make this happen.
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'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.'
Meanwhile the Spotlight Group said a transaction will go ahead based on negotiations with landlords.
Spotlight Group Managing Director, Avi Gilboa, said: 'Whilst far from a done deal, the acquisition of Harris Scarfe would offer Spotlight Group another iconic retail brand and the potential to deepen our market share.
'It also presents the opportunity to leverage our significant property interests, including Spotlight Property Group and ASX-listed HomeCo.'
The Spotlight Group employs 7,500 staff across Australia, New Zealand and Asia.
Yale Stephens, from the Australian Retailers Association, said the Spotlight Group have seen an opportunity in purchasing Harris Scarfe.
'Department stores in Australia have done it tough for some time,' he told 7 News.
'We would hope that most of jobs would remain. Obviously Spotlight have purchased those stores and they need staff to operate them.'
Several businesses have fallen victim to what has been dubbed the 'retail apocalypse'.
The Spotlight Group said a transaction will go ahead based on negotiations with landlords (stock)
Bridal on Pulteney is the latest casualty, with more than 170 stores tipped to close this year.
Household names such as Bardot, Roger David, Collette, and Napoleon Perdis dropped like flies in the past year with dozens of stores closing resulting in heavy job losses.
Jeanswest almost underwent a similar fate, however last month it was announced Harbour Guidance Pty Ltd, an Australian partner company to Hong Kong based Harbour Guide Ltd, would buy the chain.
Online shopping has been blamed for taking customers away from traditional shopfronts, with fashion sellers in particular struggling.
