In 1874 Benjamin Dunkerley arrived in Tasmania from England and decided to start a hat making business in Hobart. His skills as a hatter were backed by his ability to invent machinery, and soon after his arrival he had developed a mechanical method of removing the hair tip from rabbit fur so the under-fur could be used in felt hat making. Previously this task had to be done by hand.
In the 1880's Dunkerley moved the business to Crown Street, Surry Hills, an inner suburb of Sydney, setting up a small hat making factory.