Harris Scarfe

Harris Scarfe
Company type	Private
Industry	Retail
Founded	February 10, 1849; 177 years ago in Adelaide, South Australia, Australia
Founder	George Peter Harris, John C. Lanyon
Headquarters	Adelaide, Australia
Area served	Australia
Products	Homewares, apparel, bed linens, bathroom essentials, kitchen utensils, home decoration items, electrical and kitchen appliances, clothing for men and women
Number of employees	1380 (2020)
Parent	Spotlight Group

Harris Scarfe is a prominent Australian retailer specializing in a diverse assortment of homewares and apparel. Its product lineup includes bed linens, bathroom essentials, kitchen utensils, home decoration items, electrical and kitchen appliances, as well as clothing for men and women. Established in 1849 in Adelaide, South Australia, the company currently manages more than 50 stores across the country.

In 2015, Harris Scarfe became part of Steinhoff Asia Pacific, a global retail and manufacturing giant listed on the Frankfurt stock exchange. After Steinhoff was embroiled in a profit overstatement scandal in 2017, which led to a dramatic 90% drop in its share price, it divested various assets including Harris Scarfe. In December 2019, Allegro Funds acquired Harris Scarfe but soon placed it into administration. Subsequently, the Spotlight Group took ownership of the business in April 2020.

Early history

The origins of Harris Scarfe date back to 10 February 1849 when George Peter Harris and John C. Lanyon launched a hardware and ironmongery enterprise on Hindley Street in Adelaide. Lanyon departed in 1855 to establish a London-based buying office for the firm. In December 1866, partners George Scarfe and Richard Smith joined the venture, prompting a rebranding to "Geo. P. Harris, Scarfe & Co."

Their store was situated on Gawler Place between Rundle and Grenfell streets. By 1929, a new four-level building was constructed on a freehold site located between Rundle and Grenfell streets.

Harris Scarfe broadened its offerings to include household goods, agricultural supplies, and industrial products. The company also produced leather items such as saddlery and luggage within its wholesale division. During World War II, the Australian government adopted Harris Scarfe’s catalogue as an official pricing reference under federal price regulation policies.

Rainbow Cycles

The Rainbow bicycle brand, mainly produced in South Australia by Harris Scarfe, was sold through Harris Scarfe outlets within South Australia and via a collaboration with Sandovers in Western Australia starting from 1934. A notable achievement includes sponsored cyclist Billy Read’s coast-to-coast journey across Australia on a Rainbow bike in 1936. Throughout the 1940s and 1950s, Sandovers actively supported local cycling athletes. Most Rainbow models were economical utility bicycles; however, sponsored riders in Perth were equipped with custom-made Aussie Cycles bikes marketed under the Rainbow name.

1970s–1980s

In 1971, Baradeen Quest—a subsidiary of Investment & Merchant Finance Corporation (IMFC)—successfully acquired Harris Scarfe when it was publicly traded on the Australian Securities Exchange.

By 1976, Tasmania-based Charles Davis, under Donald Trescowthick’s leadership, assumed control of Harris Scarfe. Trescowthick redirected the company’s focus toward retail department stores while simultaneously developing Harris Scarfe Industrial (operating as Harrys Hardware) located at Mile End, South Australia. Harrys Hardware grew into a major hardware retail chain complemented by adjacent specialty outlets.

Charles Davis Limited capitalized on Harry’s growth to purchase additional hardware chains such as Lloyd's (South Australia), Campbell's (Queensland), and McEwans (Victoria and New South Wales). These hardware assets were divested through a management buyout in 1989 and subsequently acquired by Bunnings in 1993.

1990s

Throughout the 1990s, Harris Scarfe underwent significant national growth, expanding well beyond its original Rundle Mall location into suburban and regional markets. The company acquired full-line department stores from competing retailers who were streamlining their operations, including sites formerly operated by David Jones (Cairns, Townsville, Macarthur Square NSW), Myer (Colonnades), John Martin's (Arndale and Elizabeth), Stirlings in Western Australia, FitzGerald's in Tasmania and Melbourne, as well as Centre Fair (Shepparton). By 1995, Harris Scarfe managed 38 stores across Australia, establishing itself as the third largest department store chain in the country.

Despite this expansion, escalating debt levels and managerial challenges caused financial difficulties toward the decade’s end. In April 2001, the company entered receivership with liabilities of $93 million owed to unsecured creditors and an additional $50 million in debt. Subsequently, in June 2002, former Chief Financial Officer Alan Hodgson received a six-year prison sentence for falsifying information submitted to the ASX and violating corporate responsibilities.

2000s

Harris Scarfe was publicly listed on the ASX in 2001 but soon accumulated debts amounting to $160 million, resulting in losses of $31.5 million for the Trescowthick family. Although legal action was contemplated against chairman Adam Trescowthick by government authorities, the case was ultimately dismissed.

In 2002, the company initiated a turnaround strategy involving store refurbishments featuring updated merchandise selections, redesigned layouts, and refreshed branding efforts, which contributed to unprecedented growth. By 2007, Momentum Private Equity from Sydney had acquired an $80 million controlling interest.

At the close of 2003, Harris Scarfe acknowledged to the Australian Competition & Consumer Commission (ACCC) that certain promotional price claims in its catalogues might have been misleading to consumers. In 2007, the ACCC filed a lawsuit against Harris Scarfe over allegedly deceptive discount promotions asserting at least 20% off all items—a claim that was not consistently upheld. The promotional materials also displayed products under discount labels that did not accurately reflect actual price reductions.

The Federal Court ruled in 2009 that Harris Scarfe had misled customers by advertising discounts that were either incorrect or nonexistent.

That same year saw the termination of CEO Robert Atkins due to gross misconduct after an eight-year tenure during which he played a key role in reforming retail trading hours in South Australia and revitalizing Rundle Mall’s retail environment. Atkins passed away in January 2010.

Following his exit, Joe Barberis took on the role of managing director from February 2009 until September 2014. Subsequently, Graham Dean—formerly Myer group general manager for Electrical—was appointed CEO of Harris Scarfe.

2010s

In 2012, Momentum Capital divested Harris Scarfe to Pepkor, a private equity firm based in South Africa. That year also marked the appointment of Kyly Clarke as the face of Harris Scarfe’s fashion home label 'Boutique@hs'.

The acquisition of Pepkor by Steinhoff Asia Pacific (later renamed Greenlit Brands) in 2014 included ownership of Harris Scarfe. During this period, General Manager Daniel Nikoleaff was succeeded by Rebecca Peterson, previously CEO of Lovisa jewellery stores.

October 2013 saw Harris Scarfe introduce Simply Vera—a collection designed by Vera Wang encompassing women’s apparel, accessories, bedding and bath products, as well as home fragrances.

In July 2015, a recall was issued for the retailer’s home brand 'Bulls Head' jeans after carcinogenic azo dyes were detected in pocket linings.

Collaboration with interior designer Shaynna Blaze commenced in 2017 to create bed linens, homewares, accessories, and clothing lines.

Just prior to the Steinhoff corruption scandal unfolding in October 2017, Steinhoff appointed Michael Ford—former head of The Good Guys—to manage its Australasian operations amid liquidity and inventory challenges.

British fashion label Debenhams partnered exclusively with Harris Scarfe for their Australian market entry in February 2017; however, this alliance ended by November 2019. The arrangement significantly contributed to Harris Scarfe’s insolvency and subsequent administration proceedings in December 2020.

In April 2018, Harris Scarfe launched Jamie Durie by Ardor—a casual bedding collection designed by TV personality Jamie Durie. Later that August, Channel Seven presenter Kylie Gillies was appointed as the company’s fashion ambassador.

By December 2019, parent entity Greenlit Brands divested both Harris Scarfe and Best & Less to Australian private equity firm Allegro Funds.

On 11 December 2019, under General Manager Rebecca Peterson’s leadership, Harris Scarfe entered voluntary administration before moving into receivership with Deloitte Restructuring Services assuming control. At that time, the retailer reported annual sales of $380 million across 66 stores employing approximately 1,800 staff members. The Shop, Distributive and Allied Employees Association lodged a complaint with the Fair Work Commission concerning insufficient notice periods; however, Deloitte confirmed that Harris Scarfe possessed adequate assets to meet employee entitlements.

2020s

In January 2020, Harris Scarfe revealed plans to shut down 21 out of its 65 stores, resulting in the elimination of 440 positions while maintaining employment for 1,380 workers across 44 outlets. The closures affected locations in South Australia (including the flagship store), the Australian Capital Territory, Western Australia, Victoria, Queensland, and New South Wales. By February, 20 stores had ceased operations, leaving a total of 45 stores across the country.

During this timeframe, Harris Scarfe discontinued its credit card offerings and interest-free purchase options. On 3 March 2020, Spotlight Group reached an agreement to acquire the remaining stores.

On 31 March 2020, amid the COVID-19 pandemic and shortly after the Australian government introduced the JobKeeper Scheme, Harris Scarfe terminated an additional 59 employees. Deloitte, acting as receiver, anticipated that the sale would be completed soon after Easter. While initial explanations for redundancies cited economic challenges, these reasons later shifted to focus on the sale process. Employees dismissed due to restructuring may not have qualified for JobKeeper assistance.

In April 2020, retail unions launched investigations into Harris Scarfe for potential violations of the Fair Work Act concerning employee treatment. The Hobart store was closed despite having undergone recent refurbishments. Although Spotlight acquired Harris Scarfe, the company continued to operate at a loss, with creditors expected to recover only a fraction of their claims under a deed of company arrangement. Allegro Funds — which briefly owned Harris Scarfe prior to its sale to Spotlight — was set to receive nearly $70 million as the primary secured creditor.

Reports suggested that Harris Scarfe was already insolvent when Allegro Funds took control in late 2019. Suppliers accused the company of unfair practices and suspected that the collapse had been deliberately orchestrated. Further inquiries revealed that Harris Scarfe had traded while insolvent in December 2019.

By late April 2020, Spotlight ceased paying rent on all Harris Scarfe premises, requesting landlords reduce rent by 50% and postponing a $50 million payment related to the acquisition. Former Queensland Premier Campbell Newman condemned these actions as "unconscionable conduct," highlighting that landlords were issued ultimatums even as some businesses experienced improved sales figures.

Around April 2020, roughly 1,200 employees remained on staff. In July 2020, the Fair Work Commission determined that the Shop, Distributive and Allied Employees Association (SDA Union) had acted contrary to former Harris Scarfe employees' interests by delaying unfair dismissal claims to avoid endangering the Spotlight sale. The Retail and Fast Food Workers Union criticized the SDA for prioritizing payroll deductions over safeguarding worker rights.

According to Smart Company in July, Harris Scarfe resumed recruitment soon after March redundancies but initially limited hiring at impacted stores pending management approval. While Harris Scarfe declined to explain redundancy causes publicly, union representatives indicated these were conditions tied to the Spotlight acquisition.

By February 2021, creditors encountered additional postponements in dividend payments originally planned for July 2020. Suppliers reported increased stock deliveries leading up to Harris Scarfe’s collapse and several claimed amounts exceeding $1 million. Despite record sales under Spotlight's ownership, Harris Scarfe still owed suppliers up to $236 million and imposed a 10% surcharge on late orders during the global crisis.

Store formats

Harris Scarfe lifestyle and homewares outlets provide an extensive selection of products including bed linen, homewares, cookware, manchester, clothing, electrical and kitchen appliances, menswear, womenswear, intimates, sportswear, as well as travel and outdoor gear. These stores are present in the Australian Capital Territory, New South Wales, Queensland, South Australia, Tasmania, and Victoria, with a total of 52 locations. Although the retailer has made several efforts to establish a presence in Western Australia, it has retreated each time.

Harris Scarfe Home outlets specialize in homewares such as bed linen, cookware, kitchen appliances, electrical items for the home, personal care devices, and bathroom electrical products. Currently, 11 Harris Scarfe Home stores operate across New South Wales, Queensland, South Australia, Tasmania, and Victoria.

Product categories

The range of products offered by Harris Scarfe encompasses:

Bed Linen & Manchester – including sheets, quilts, pillowcases, comforters, mattress toppers and protectors, electric blankets
Bathroom Towels & Accessories – such as bath towels, mats, robes, scales, and storage solutions
Home Decor – featuring cushions, throws, clocks, vases, candles, diffusers, lamps, photo frames, and wall art
Kitchenware and Cookware – comprising fry pans, cast iron and stainless steel cookware sets, induction cookware sets, bakeware items, knives and utensils
Tableware – offering dinnerware sets, cutlery sets, glassware selections, table linens, bar tools and serving pieces
Kitchen Appliances – including air fryers, slow cookers, coffee machines, grills, kettles, toasters, food processors, blenders, microwaves as well as pressure and rice cookers and juicers
Home Electrical Appliances – such as vacuum cleaners (including robotic models), steam mops, irons, garment steamers along with heaters and fans
Personal Care & Bathroom Electrical Appliances – hairdryers and straighteners, curling irons, electric shavers and massagers
Women’s Clothing & Apparel – womenswear ranges including underwear, bras, footwear and nightwear
Men’s Clothing & Apparel – menswear collections comprising underwear, footwear and nightwear
Travel Goods – luggage items and travel accessories

Exclusive brands

Smith + Nobel — Harris Scarfe’s affordable home brand
Miguel Maestre — celebrity-inspired line within Smith + Nobel
Jayson Brunsdon — apparel as well as manchester and homewares
Jane Lamerton — apparel alongside manchester and homewares
Chyka — apparel together with manchester and homewares
Shayna Blaze — homewares range designed by Australian designer Shaynna Blaze
MOZI — exclusive Australian-designed homewares available only at Harris Scarfe

External links