Frasers Group, the owner of Sports Direct and House of Fraser, has acquired luxury department store Harvey Nichols, securing more than 1,000 jobs but warning that significant restructuring will be required.
The deal will see Frasers Group take control of Harvey Nichols’ UK stores, including its flagship Knightsbridge location, as well as its online business and international franchise operations.
Harvey Nichols, which stocks more than 800 premium and luxury brands across categories including fashion, beauty, food and home, appointed administrators in June following a period of challenging trading.
The retailer operates stores in London, Manchester, Birmingham, Bristol, Leeds and Edinburgh.
Michael Murray, Chief Executive of Frasers Group, described Harvey Nichols as a “British institution with significant potential”, but warned that significant changes would be needed to secure its long-term future.
“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,” he said.
The acquisition follows an auction process in which Frasers reportedly competed with Next for control of the retailer. Harvey Nichols had previously warned that it could be forced to cease trading within a year without new investment.
Frasers is now expected to review Harvey Nichols’ store portfolio, structure and cost base as it develops a turnaround plan for the business.
Julia Goddard, Chief Executive of Harvey Nichols, said the acquisition represented an “important milestone” and provided a strong platform for the next stage of the retailer’s development.
She said: “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.”
The acquisition further expands Frasers Group’s presence in the premium and luxury retail market. Its portfolio already includes Flannels, Gieves & Hawkes and Agent Provocateur, alongside retail businesses including Sports Direct, House of Fraser and Jack Wills.
Harvey Nichols’ restaurant at London’s OXO Tower is not included in the transaction and is being sold separately.
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