Frasers Group swoops for struggling Harvey Nichols

Mike Ashley’s Frasers Group has bought Harvey Nichols after the struggling department store chain fell into administration.

Bosses say the move has secured more than 1000 jobs, but have warned of “tough choices” that are likely to see Harvey Nichols become a “smaller business” in the short-term.

They add Sports Direct owner Frasers Group will oversee a “significant restructuring”, with plans to review Harvey Nichols’ shop portfolio, organisation structure, operating model and costs.

The deal includes the well-known retailer’s stores in Knightsbridge, Manchester, Birmingham, Bristol, Leeds and Edinburgh, and its online business and product inventory.

Harvey Nichols’ international franchise stores will continue to trade as part of the deal, though the OXO restaurant – launched by Harvey Nichols in 1996 at the OXO Tower building on London’s South Bank – has been acquired by another buyer.

The takeover comes after the department store firm – which slid to a £49 million loss in its latest financial year – appointed administrators from advisory firm FTI, and follows a warning it would “cease trading” within a year without new investment.

The company was bought by Hong Kong-based business magnate Sir Dickson Poon in 1991, but he put it up for sale earlier this year.

Michael Murray, Frasers Group chief executive, said: “Harvey Nichols is an iconic British institution with significant potential, but it is clear meaningful change is needed.

“The turnaround will require tough choices and we are prepared to make those decisions, even if that means a smaller business in the near term, to create a stronger and more sustainable Harvey Nichols for the long-term.”

Julia Goddard, Harvey Nichols’ chief executive, added: “This marks an important milestone and provides a strong platform for the next phase of the business’ evolution.

“I look forward to working closely with Frasers Group to ensure Harvey Nichols remains a distinct and relevant luxury destination.”

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