Administrators have announced that menswear retailer Ed Harry will soon close for good, weighed down by debts of close to $13 million.
In mid-January, KPMG announced that it had been appointed as administrators for Specialty Mens Apparel Pty Ltd, which trades as Ed Harry.
The 26-year-old retailer has close to 90 stores around Australia and employs 498 people.
At the time of that announcement, administrator Brendan Richards cited “fierce” trading conditions and a disappointing Christmas period as the reasons for Ed Harry’s troubles.
“Unfortunately, and despite having run a comprehensive sale of business campaign, there have been no viable offers received for the ongoing operations of the company,” Mr Richards said in a statement dated 7 February.
“As such, the administrators have no alternative other than to progress to an orderly wind-down of the company’s operations.”
Stores will continue to liquidate stock, with the process expected to take six to eight weeks to complete.
The company is carrying total debts of $12.95 million, close to half of which ($5.3 million) is owed to trade creditors. Secured creditors are owed a further $4 million, and landlords $2.4 million.
Employees — excluding any potential redundancy claims — are collectively owed $1.25 million.
Ed Harry’s managing director, David Clark, extended his thanks to the chain’s employees and loyal customers for their support.
“On behalf of the directors, I just want to say thank you; this is a sad time for all those who have put so much into our business,” he said.
It comes just several months after another menswear retailer, Roger David, collapsed and days after news that cosmetics retailer Napoleon Perdis will slash its store network in half in the hopes of finding a buyer.
Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016.