Frasers Group, owned by billionaire Mike Ashley, has bought Harvey Nichols out of administration, taking control of its six UK stores, online business, existing stock and more than 1,000 employees.
The acquisition includes Harvey Nichols’ famous flagship store in Knightsbridge, London, as well as branches in Manchester, Birmingham, Bristol, Leeds and Edinburgh. Frasers has also acquired the retailer’s international franchise agreements.
The price has not been officially disclosed, although reports have put the deal at around £40 million.
The takeover comes after a difficult period for Harvey Nichols. The company has suffered substantial losses in recent years and was put into administration after struggling to secure investment. It dates back to 1831 and has long been regarded as one of Britain’s best-known luxury department stores.
The retailer had been owned by Hong Kong businessman Sir Dickson Poon and his group for around 35 years before the sale.
Frasers – the owner of the Sports Direct chain – emerged as the successful buyer after competing interest from other retailers, including Next. The acquisition is another major move by Mike Ashley’s retail empire, which has only recently been pursuing acquisitions of the likes of Hugo Boss and Burberry.
The Group has warned that “significant changes” will be necessary at Harvey Nichols, as Frasers Chief Executive, Michael Murray, said “meaningful change is needed” as attempts are made to build Harvey Nichols into a more sustainable operation.
For now, Frasers has said that the six UK Harvey Nichols stores will continue trading until further notice.
The company’s Dublin operation is being treated separately. Frasers has acquired certain assets, including stock and fixtures, while discussions about the future of the Dublin business continue. The OXO Tower restaurant in London is also excluded from the deal and has been sold separately.
