The sale of failed retailer Harris Scarfe is not proceeding to plan, with Toorak Holdings' A$80m-A$100m bid being withdrawn.

The retailer, which went into administration earlier this year with debts of A$190m, had a new chief executive, Robert Atkins, appointed last week.

Ferrier Hodgson, the administrator, is still thought to be negotiating a possible sale with Dimmeys, although it is rumoured that talks are not promising. If a sale cannot be agreed Harris Scarfe may have to be restructured.