Beleaguered menswear chain Ed Harry has been salvaged by a management buyout (MBO) group led by chief executive officer David Clark and chief financial officer John Read.
The South Australia-based retailer was placed in voluntary administration in February, after a difficult retail environment affected funding for the business.
However, administrators, Ferrier Hodgson partners Martin Lewis and John Hart, confirmed today that Specialty Mens Apparel, a South Australian-based group, has rescued the label and is now the new owner of 78 Ed Harry stores.
Reports indicate that the 78 stores acquired were selected from 130 Ed Harry outlets nationwide because they were deemed more "profitable" with demographics that fit with a "new strategy". The 78 stores are located across Australia in all states and territories, except Tasmania.
Clark said he and Read were pleased to have been able to put together a deal that saved this popular menswear business and provided ongoing employment to a majority of the employees of the previous company.
He said the business will retain its focus on quality, comfort and value – elements that were the chain's greatest strengths in the past, but said the new strategy for Ed Harry will include a more "on-trend" approach and a revamp of the brand's offering in Australia.
"A key change will be our increased focus on regular injections of 'on trend' men's clothing and accessories in line with the modern customer's demands," he said.
"Our successful brands will continue to evolve quickly with exciting new labels. Complete co-ordination throughout our new brands and ranges is a high priority for our merchandise team, as is putting together an appropriate shopping environment for our target customer."
In its first move post-sale, Ed Harry has opened a new Victorian concept store in Bridge Road, Richmond. Additional new concept stores are also planned to launch in the coming months, at shopping centres at Carousel, Perth, and Marion, Adelaide.
Ed Harry has also established a website which provides a preview of product available and lists locations of the stores currently in operation, and is actively building a significant base of VIP customers.
Ed Harry has been trading since the first "Harry" menswear store was opened in Adelaide in 1932 by Victor Harry, with his son Edward Harry joining the business in 1971. The brand pursued an aggressive expansion strategy in the 1990's and celebrated the opening of its 100th store in the year 2000. Ed Harry provides casual and formal wear, with a target market of middle-aged men.