Retailer Harris Scarfe, the bricks and mortar parent of e-tailer dstore.com.au, has appointed voluntary administrators after unveiling financial irregularities built up over six years.
Trading in Harris Scarfe shares were halted on Friday after the resignation of chief operating officer Dan McLaughlin for "personal reasons". A statement to the stock exchange suggested the directors discovered critical accounting irregularities that had given the board a misleading view of the company's financial health.
Shares remain suspended while the retailer's board has promised to work with the voluntary administrators to salvage as much shareholder value as possible.
Before the announcement, the firm had a market capitalisation of almost $50 million, but was predicting zero profit growth after earnings fell dramatically in the last few quarters.
ARN reported on the first of December last year that the retailer had acquired e-tailer dstore.com.au for an undisclosed amount in one of the first examples of a struggling dot-com clinging to bricks-and-mortar retailer to ensure survival.