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Harris Scarfe, Case Study, Hughes PR

Harris Scarfe
Bringing a retail icon back to life

The Situation. In April 2001 the future of 150-year–old retail icon Harris Scarfe Limited looked bleak.

Trading of its shares on the Australian Stock Exchange had been suspended, a Voluntary Administrator had been appointed by the Harris Scarfe Board to investigate accounting irregularities totaling nearly $125 million and the company’s major creditor had appointed Ferrier Hodgson as Receiver and Manager.

Unsecured creditors (mainly suppliers) were estimated to be owed $65 million, uncertainty hung over the future job prospects of the company’s 3000 employees nationally, and customers were abandoning the stores.

Ferrier Hodgson required a professional PR company to manage communication in support of the firm’s efforts to restructure and sell Harris Scarfe and appointed Hughes Public Relations.

Objectives. Key objectives of the communication program were to:

  • Address supplier nervousness and maintain supply of stock;
  • Rally the morale of employees to protect jobs and enhance customer service and sales;
  • Foster the ongoing support of Harris Scarfe shoppers to maintain short-term revenues and long-term loyalty;
  • Assist the business sale process by building public acceptance of its viability;
  • Ensure consistent communication with these key stakeholders and the news media, government and unions.

The communication program rested on specific strategies targeted at supporting the business plan of the Receiver and Manager.

Elements. Key elements included:

  • Establishment of a communication team, which met daily in the early weeks, to drive and manage the communication planning and implementation;
  • Choosing and briefing a single spokesperson with key messages, updated as necessary;
  • Identification of all relevant news media and timely provision of accurate information and specific briefings when required;
  • Managing media inquiries to balance the conflict between media deadlines and requirements and management’s availability and confidentiality issues;
  • Establishment and management of free call hotlines for suppliers and customers;
  • Media monitoring and free call topics to ensure that incorrect information was quickly identified and corrected;
  • Maintaining milestone publicity to ensure that all major events were publicised.

Outcome. The communication program played its role in a successful outcome. Eight months later, in November 2001, the consultancy assisted Ferrier Hodgson in announcing the successful sale of Harris Scarfe.

The PR consultancy has continued to work with the company’s new owners to relaunch and build a revitalised Harris Scarfe.

Today, Harris Scarfe continues to build on its 150-year retail heritage under new ownership and with a new lease of life.

While store numbers have been rationalised from 35 to 23, the jobs of 1700 people in the company’s core markets of South Australia, Victoria and Tasmania have been saved.

The company’s head office and flagship store have been retained in Adelaide. Its customer base is intact and growing.