Update on Ed Harry voluntary administration - KPMG Australia
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Update on Ed Harry voluntary administration following Meeting of Creditors

Update on Ed Harry voluntary administration

On 15 January 2019, KPMG’s Brendan Richards and Gayle Dickerson were appointed Voluntary Administrators of national specialty menswear retailer Specialty Mens Apparel Pty Ltd, trading as “Ed Harry”.

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Following their appointment - and with the support of key stakeholders - the Administrators have continued trading as normal across all 87 stores.

“We have seen a really positive response from customers since our appointment,” said Brendan Richards KPMG Partner. “This highlights the strength of the Ed Harry brand and indeed the strong levels of customer loyalty Ed Harry has developed since 1993.”

Mr Richards also confirmed a sale of business campaign has commenced and there are a number of parties who have expressed interest to date.

“We remain hopeful that a sale of business campaign will result in a positive outcome for Ed Harry’s employees and key stakeholders” said Mr Richards. “In addition, we would also like to acknowledge employees, trade creditors and a number of landlords who have provided support which maximises the prospects of a strong outcome for creditors.”

In the interim, the Administrators have continued a clearance sale of existing merchandise with further reductions now added. Gift cards are being honored for one month on a dollar-for-dollar basis.

Outcome of first creditors meeting

At the first meeting of creditors held on Thursday, 24 January 2019 creditors voted to ratify the appointment of Brendan Richards and Gayle Dickerson as Voluntary Administrators.

At the meeting the Administrators provided an indicative overview of the Ed Harry’s creditor position as at the date of their appointment, noting these were indicative figures only and had not been verified at this point in time. The table below provides an updated estimate on the creditors position.

Category

Estimated number Estimated value
Employees* 498 $1.8m
Secured creditors 20 $4.0m
Trade creditors 100 $5.3m
Landlords 33 $2.4m
Total 651 $13.5m

* Excludes potential redundancy claims

The Administrators advised creditors it was too early to make a determination on any potential return to creditors. Any potential return to creditors will be dependent upon the success of the sale of business or inventory realisation program and the order of priority of creditor classes as determined by the Corporations Act.

The Administrators also advised they intend to seek an extension to the convening period to enable the completion of the sale of business or inventory realisation program.

About Ed Harry

State Number of stores Number of staff*
ACT 2 8
QLD 22 124
NSW 11 55
NT 4 26
SA 14 108
VIC 15 84
WA 19 93
TOTAL 87 498

Includes full time, part time and casual staff

Ed Harry is a national, specialty menswear retailer offering a range of casual and formal apparel. Ed Harry ranges four proprietary brands: Insitu DNM, Jonathan Adams, and Villains of Virtue. Ed Harry operates 87 stores and employs 498 staff. The head office is based in Hindmarsh, Adelaide South Australia.

http://www.edharry.com.au

For further information

Marjorie Johnston
KPMG Communications
+ 614 07 329 430
mjohnston4@kpmg.com.au
 

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