Department store chain Harris Scarfe has become the latest casualty of the flagging retail sector after being placed into receivership.

The $380 million chain has 66 stores across the country from Top Ryde in Sydney's northern suburbs, Westfield Chermside and Carindale in Brisbane, Canberra, Wagga Wagga down to Geelong in Victoria, Adelaide and Hobart.

Harris Scarfe has gone into receivership less than a month after a deal to sell the chain to Allegro Funds. Credit:AFR

Harris Scarfe employs more than 1800 staff and said the appointment of DRS partners Vaughan Strawbridge, Kathryn Evans and Tim Norman was made by an unnamed secured lender to the group.

While the stores will remain fully operational and staff will be paid by the receivers, a sale process of the business will now commence.