Mike Ashley’s Frasers Group has acquired department store chain Harvey Nichols out of administration.
Harvey Nichols
The deal includes Harvey Nichols’ portfolio of six stores in Birmingham, Bristol, Edinburgh, Leeds, Manchester and the newly refurbished flagship in London’s Knightsbridge, together with its online business.
Frasers said discussions over Harvey Nichols’ Dublin store remain ongoing. Harvey Nichols’ restaurant in the Oxo Tower in London is not included in the deal and is being sold off separately.
“Harvey Nichols is an iconic British institution with significant potential, but it is clear meaningful change is needed,” said Michael Murray, Frasers Group chief executive.
“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.”
He added: “By integrating Harvey Nichols into our existing luxury ecosystem, we believe Frasers Group can deliver the expertise, infrastructure and commitment needed to give the business the best chance of long-term success.”
Harvey Nichols is one of the UK’s most recognised luxury retailers, with a history spanning almost 200 years and a portfolio of more than 800 premium brands.
The luxury department store group was put up for sale earlier this summer. The chain struggled in recent years and implemented a turnaround plan to reduce overheads. Its most recent financial results revealed operating losses of £27.4m for the year to 30 March 2024, up from £15.4m the previous year and marking the fifth consecutive year of losses.
Harvey Nichols chief executive Julia Goddard said: “Today marks an important milestone for Harvey Nichols and provides a strong platform for the next phase of the business’s evolution under the ownership of Frasers Group.
“Over the past year, we have made significant progress in repositioning this iconic business, investing in our flagship store, broadening our customer proposition and strengthening the brand DNA.”
Serena Eddy, legal director in the restructuring and insolvency team at law firm Shakespeare Martineau, said Harvey Nichols’ difficulties highlighted how vital early advice is for businesses when they encounter financial distress.
“Despite a decline in bricks-and-mortar shopping, household names can still command significant value to the right buyer, making a pre-pack administration not just viable but often the most effective one,” she said.
“Pre-packs help provide much-needed certainty for employees, customers, suppliers and other stakeholders. It helps preserve business stability, allows supply chain continuity, safeguards the brand reputation and provides the retailer with a platform for recovery and growth under new leadership. The earlier conversations or intervention begin, the wider the range of restructuring and recovery options are available. Avoiding prolonged insolvency processes minimises the risk of a proposed sale falling through.”
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