The group, which also owns Sports Direct and Flannels, has acquired most of the chain’s stores from FTI Consulting securing more than 1,000 jobs
Mike Ashley’s Frasers Group has purchased Harvey Nichols, rescuing the embattled luxury department store from the brink of insolvency.
The group, which also owns Sports Direct and Flannels, has snapped up each of the chain’s stores, excluding the Dublin location, from FTI Consulting through a pre-pack administration process.
Frasers’ takeover of Harvey Nichols represents the latest move in its drive into luxury fashion, as it seeks to expand beyond its origins in cut-price sportswear.
The firm, founded by billionaire Mike Ashley, has seen off rivals including FTSE 100 retail giant Next, which had also been involved in the bidding process.
The deal will safeguard the jobs of more than 1,000 members of staff, though Harvey Nichols employs around 1,200 in total, suggesting a number of redundancies will follow. Frasers will also acquire the group’s online operation and existing stock, as reported by City AM.
Frasers stated it will need to commit to “significant restructuring” of the department store group, which has recorded five successive years of losses after buckling under fierce competition from rivals Harrods and Selfridges. In the UK, Harvey Nichols has stores in London, Bristol, Manchester, Birmingham, Leeds and Edinburgh.
Prior to the deal, Ashley warned that Harvey Nichols – which had risen to prominence through its association with the 1990s sitcom Absolutely Fabulous – had fallen into a “death spiral”. He told the Financial Times that he anticipated the department store chain would be sold for less than £40m.
“I don’t think I’ll be writing a huge cheque, because you’ve got to think about the future losses,” he had said.
Earlier this week, directors of the Knightsbridge-based Harvey Nichols warned that the business faced collapse unless it secured a buyer or obtained emergency funding.
Confirming the deal on Thursday, Frasers chief executive Michael Murray 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.”
Frasers has made several moves for luxury brands in recent years, including an unsuccessful attempt to gain control of upmarket bagmaker Mulberry.
Last month, the group submitted a £1.7bn offer for German fashion house Hugo Boss. Frasers subsequently increased its stake in the company to 37 per cent, triggering a mandatory offer for all of the shares it does not already own.
Frasers said its acquisition of Harvey Nichols will build on the group’s “elevation strategy, strengthening its luxury positioning”. Julia Goddard, chief executive of Harvey Nichols, 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.”












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