Modella Capital Enters Bid for Harvey Nichols
The owner of TG Jones and Hobbycraft has reportedly joined the race to acquire the struggling luxury department store.
Modella Capital, the owner of retail firm TG Jones, has expressed interest in acquiring the department store chain Harvey Nichols, which is currently up for sale by its owner Dickson Poon. This development places Modella Capital alongside other potential bidders including Next and Mike Ashley’s Frasers Group.
Modella Capital, which also owns Hobbycraft and Flying Tiger, has previously been associated with restructuring distressed UK businesses, a process that has sometimes involved store closures. The investment group acquired WH Smith’s High Street arm, subsequently rebranding it as TG Jones.
Harvey Nichols has faced financial challenges, with losses widening to £34 million in the year ending March 2024. During the same period, sales experienced a 5% decrease, totaling £204.8 million. These figures represent the most recent available financial accounts for the company.
The department store chain has a long history, with its origins tracing back to 1831. Benjamin Harvey initially opened a linen shop in Knightsbridge, later forming a partnership with James Nichols. Following Harvey’s death in 1850, Nichols and Benjamin Harvey’s wife, Anne, established Harvey Nichols & Co.
Dickson Poon acquired the business in 1991 for £53 million from the Burton Group. Under his ownership, and with contributions from figures like retail consultant Mary Portas, Harvey Nichols cultivated a reputation for high fashion. The store has also been associated with notable customers, including Princess Diana, and was famously featured in the comedy series Absolutely Fabulous.