Eurobodalla Shire Mayor Liz Innes hopes Harris Scarfe can be saved under a new owner and Moruya will retain the retailer.
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Cr Innes said the news the retailer would go into voluntary administration was "terrible", but hoped a new owner would be found to trade on.
"With that distinctive green facade and familiar corner spot, Harris Scarfe is part of the fabric of Moruya and the Eurobodalla. Generations of families have shopped there, including mine, and remember it as Allens or Youngs, even back to Emmotts," Cr Innes said.
"Unfortunately, there is not a great deal the council or anyone can do while administrators work to sell the company. All we can do is wait, and as individuals make a decision to start buying locally.
"This is a sign of the times and changing shopping habits. If we want bricks and mortar stores that employ local people and contribute to our communities, then we must spend our money in them. It's that simple.
"I feel for the employees. Receivers say the business will trade over Christmas and staff entitlements can be met. But what a dreadful time to face this kind of uncertainty. The best way we can show our support is by shopping with them, and doing the same for all our local retailers."
Harris Scarfe has also has shops in Ulladulla and Merimbula.
It was placed in voluntary administration and is expected to be sold, the announcement coming as a shock to workers.
The company has 66 stores across Victoria, Tasmania, NSW, Queensland, South Australia, Western Australia and the ACT, after starting as a hardware business in Adelaide in 1849.
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