Mike Ashley's Frasers Group Acquires Harvey Nichols
Frasers Group has purchased the luxury department store, adding it to its portfolio of retail brands.
Mike Ashley's Frasers Group has acquired the luxury department store Harvey Nichols, a move that secures the 195-year-old retailer's future. The acquisition adds Harvey Nichols to Frasers' existing stable of brands, which includes Sports Direct, Flannels, House of Fraser, and Evans Cycles.
The department store chain employs 1,200 staff in the UK. Uncertainty had loomed over these employees since owner Sir Dickson Poon placed the business up for sale in June. Frasers has been actively seeking to expand its luxury offerings, having previously shown interest in brands like Hugo Boss and Gieves & Hawkes.
Ashley described Harvey Nichols as being "in a death spiral" last week. The department store has not made a profit for five years, impacted by a decline in tourism spending following the COVID-19 pandemic and the removal of a VAT-free shopping scheme. Prospective buyers were reportedly told that as much as £60 million in investment would be required to restore the store to its former prominence.
Previous interest in acquiring Harvey Nichols included fashion chain Next, which withdrew its offer earlier this summer, and several private equity firms that were reportedly in buyout discussions. High-profile figures, including Princess Diana, were associated with the store during its peak in the 1990s, and Mary Portas, as creative director, transformed it into a trendy destination.
However, Frasers' recent acquisition of the online luxury marketplace Matchesfashion has raised concerns. Frasers placed Matchesfashion into administration just three months after its purchase in December 2023, resulting in 273 job losses and leaving designer brands like Burberry and Gucci owed approximately £36 million.