Frasers Group has announced it will pay personal shoppers and stylists who were concerned about outstanding payments from Harvey Nichols' previous owners. The commitment comes after Frasers Group, owned by billionaire Mike Ashley, completed a £40 million deal to acquire the luxury department store chain, which had warned it was close to running out of funds.
While the takeover has raised concerns among customers and suppliers about payments, Frasers Group stated that individuals contracted for their services before Harvey Nichols entered administration will be paid in full, mostly within 72 hours. A spokesperson for Frasers Group confirmed that the company had identified numerous self-employed individuals owed money for their services. "Whilst this would normally be a matter for the administrator with no obligation falling upon Frasers Group, we would like to reassure these individuals that we will ensure they are paid swiftly and in full," the spokesperson said.
Frasers Group indicated that for future engagements, personal shoppers and stylists working with Harvey Nichols will be paid on a monthly basis, a change from the previous quarterly payment schedule. This move follows Frasers' acquisition of the online luxury marketplace Matchesfashion in December 2023 for £52 million. However, Matchesfashion was placed into administration just three months later, resulting in 273 job losses and leaving designer brands such as Burberry and Gucci owed a total of £36 million.
The Harvey Nichols website is currently unavailable due to a transition period, with a message stating that online services are temporarily suspended but physical stores remain open. The company has advised customers with outstanding refund requests for orders or gift cards purchased before August 13 to contact administrator FTI Consulting, as these fall under the previous ownership structure.
Mike Ashley had previously described Harvey Nichols as being "in a death spiral." The retailer has faced financial difficulties in recent years, exacerbated by a downturn in tourism spending and the removal of a VAT-free shopping scheme. These challenges led to the store failing to make a profit for five years. Earlier this summer, High Street fashion chain Next withdrew its interest in acquiring the business, and several private equity firms were reportedly in talks.
In its past, Harvey Nichols was a prominent fashion destination, particularly in the 1990s, and was famously featured in the TV show Absolutely Fabulous. The store's then-creative director, Mary Portas, was credited with transforming it into a trendy hub with distinctive window displays.