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]] Harris Scarfe Department Stores was founded in South Australia over 160 years ago in Rundle Mall , Adelaide . At its peak, Adelaide was home to five major South Australian department stores (including Harris Scarfe, John Martins, Birks and Moore's), of which Harris Scarfe is the sole survivor. EXPANSION In the 1990’s Harris Scarfe began an era of unprecedented growth, both within South Australia, and interstate. The growth within South Australia was fuelled by an aggressive store expansion plan, which was assisted by the demise of the Venture chain of stores. With the absorption of John Martins by its parent company David Jones , Harris Scarfe purchased half of John Martins suburban stores, which were deemed unsuitable to be re-branded as David Jones. Harris Scarfe also acquired a three level store in the Colonnades Shopping Centre , as the result of a Myer store closure. At Harris Scarfe’s peak, the company operated 11 South Australian stores. The company continued its aggressive expansion interstate, opening stores in New South Wales , Queensland , Tasmania , Victoria (Australia) and Western Australia . The company acquired a large amount of its retail space (and its largest stores) as a result of Australia’s two largest department store chains Myer and David Jones rationalizing their chains. The company’s expansion into Tasmania was accelerated by the purchase of a state-wide department store chain. BANKRUPTCY In 2001 Harris Scarfe suppliers and customers, and even a large amount of the company’s staff were shocked when the thriving business was suddenly faced with cash-flow problems. The company made headlines in South Australia when concerned suppliers, from whom Harris Scarfe had purchased large amounts of stock on credit, entered the flagship store in Rundle Mall, and began retrieving their stock directly from the shelves, before shocked staff and customers. The company soon enter voluntary receivership, and its shares were withdrawn from the Australian Stock Exchange . Examination of the company’s books revealed that assets had been re-valued well above market value in an effort to conceal its spiralling losses. This practice had left the company with multimillion-dollar debts. REVITALISATION Harris Scarfe was sold to a private consortium, with the shareholders receiving little or no proceeds of the sale. The consortium set out to firstly stabilise the business, with possible expansion and a refloat on Australian Stock Exchange in the future. The consortium began a store rationalisation program as a measure to help restore profits. In the days after the purchase all stores in Queensland and New South Wales, where Harris Scarfe was under represented were closed. In its home state South Australian two suburban stores were closed, Munno Para in the north, and Woodcroft in the south. The same occurred in Victoria and Tasmania, with a limited number of unprofitable store closures. In the final stage of rationalisation it was decided the business would also withdraw from the Western Australia market. The company then started a revitalisation program. The remaining stores were remodelled with new stock, new layouts and a new company logo. This was then followed by an extensive advertising campaign. As a result Harris Scarfe soon began to enjoy record sales. TODAY While the company has yet to begin any expansion it has been hinted by the management that the company will follow any suitable opportunities that may arise. In 2002 Harris Scarfe opened its first new store after the revitalisation at Werribee in Victoria. This was seen as a major step forward for the new company and resulted with much success in the growing Werribee area. Harris Scarfe Werribee is now the flagship store in the Victorian branch. In 2006, Harris Scarfe reopened their completely refurbished store at Colonnades SA, as part of the centres refurbishment. The store reopened with a reduction in floor-space, occupying only the ground floor of its original 3-floor store. The upper levels are planned to house a new Best for Less, JB Hi-Fi, and Cheap as Chips discount store. EXTERNAL LINKS |
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