It was the company’s only option, according to administrators Brendan Richards and Gayle Dickerson of KPMG, who said they had received no viable offers to purchase the business.
“Despite a thorough sale campaign being undertaken, there has been limited interest from the market in the business as a going concern,” Richards said.
Remaining stock will be sold and the company’s operations will be fully wound down over the next six to eight weeks.
The closure will impact nearly 500 staff who work across 87 stores nationwide and in the head office in Adelaide, South Australia.
Ed Harry is just the latest retailer to end up on the chopping block, citing slower sales amidst challenging economic conditions.
Napoleon Perdis went into administration last week and announced the closure of half of its bricks-and-mortar stores, citing unrealistic shopping centre rents as a key factor in the decision. And global skincare brand Crabtree & Evelyn in January closed its 12 Australian stores as part of a broader global wind-down due to the tough sales environment. Specialty menswear retailer Roger David also closed its doors for good at the end of the year.
While all of these retailers also traded online, it does not seem to have been enough to offset flagging sales in bricks-and-mortar stores.
“We would like to take this opportunity to thank Ed Harry’s loyal staff, customers, and landlords for their continued support over the administration – and we look forward to the ongoing support from stakeholders over the remainder of the administration period in order to maximise the return to creditors,” Richards said.
Ed Harry managing director David Clark also thanked the Ed Harry team around the country for their support and efforts throughout this difficult period.
“Our team members and our customers have been incredibly supportive and 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,” said Clark.