Luxury department store chain Harvey Nichols has been bought by Mike Ashley’s Frasers Group in a pre-pack administration deal for an undisclosed amount and beating off a rival bid from Next.
The acquisition covers Harvey Nichols stores in London, Manchester, Birmingham, Bristol, Leeds and Edinburgh but not Dublin.
Additionally, Frasers Group will also acquire the online business, and shops will continue to operate under their existing licensing.
Michael Murray, Frasers’ chief executive and Ashley’s son-in-law, called the store a “British institution with significant potential” but warned that “clear meaningful change is needed” and further warned. “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.”
Lindsay Hallam, senior managing director of administrator FTI Consulting, who advised Frasers Group on the sale, said she was “pleased to have secured a buyer, providing continuity for Harvey Nichols and enabling it to move forward under new ownership”.
“We are particularly pleased the transaction secures more than 1,000 jobs and provides a strong platform for its next chapter.
“Our focus was to find a solution that protected the underlying value of the business, securing a future for a 200-year-old retailer, and delivering the best possible outcome for stakeholders”.
Harvey Nichols was bought in 1991 by Hong Kong-based businessman Sir Dickson Poon but he put the group up for sale earlier this year. Harvey Nichols’s restaurant in the Oxo Tower, London is being sold off separately and is not included in the deal.
