Menswear chain Ed Harry has been placed into voluntary administration following a “particularly tough” Christmas sales period.
KPMG’s Brendan Richards and Gayle Dickerson were appointed voluntary administrators of the business on Tuesday and will immediately embark on a clearance sale of existing merchandise.
It’s understood all 87 stores across Australia will operate as normal while administrators explore all possible options, including a trade sale.
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“Like many other Australian retailers, after a strong period of growth, it [Ed Harry] has faced a challenging environment over the past 12 months – and a particularly tough Christmas sales period,” KPMG partner Brendan Richards said.
“It has also become clear that shopping centre footfall has been significantly weaker than expected.”
Ed Harry was established in 1993 and currently employs 498 staff across the country.
“Competition both in local bricks and mortar and online has been fierce in our sector for some time now. While this was to be expected, the Directors had been exploring options for funding to enable Ed Harry to continue to compete and grow, however to this point have been unsuccessful,” Managing Director David Clark said in a statement.
“Today is a difficult day for all our hard-working employees and loyal customers.”
KPMG says store gift cards will be honored for one month on a dollar-for-dollar basis only.
The first meeting of creditors of the Company will be held in Adelaide on Thursday 24 January 2019.