The Fall of Harrolds: A Luxury Retail Icon Collapses

As a Greek family-owned business, Harrolds is Australia’s only privately owned luxury department store.

Founded in 1985, Harrolds established itself as a premier destination for luxury fashion in Melbourne, Sydney, and the Gold Coast. The retailer stocked renowned brands such as Tom Ford, Saint Laurent, Balmain, and Burberry.

Despite efforts to adapt to the changing retail landscape, including launching an online store in 2020, Harrolds could not withstand the challenges of reduced spending, declining foot traffic, and unfavourable government policies.

The retailer’s liquidation has left a trail of financial devastation—Harrods owed over $16 million to creditors, including prominent fashion brands and the Australian Taxation Office. Employees are also owed more than $190,000 in entitlements.

Harrolds’ Managing Director, Ross Poulakis, expressed ‘deep regret’ over the decision.

‘Despite our best efforts to adapt to the evolving economic environment, a combination of reduced luxury spending, decreased foot traffic, unprecedentedly high levels of CBD office vacancies and extremely unfavourable government policies has significantly impacted our ability to sustain operations,’ Mr Poulakis shared.

‘Unfortunately, the retail sector in Australia has been hit hard. Like many other retailers before us in this period, we have had to close our doors.’

The collapse of Harrolds marks a significant loss for the Australian luxury retail market and raises questions about its future in the country.