Frasers Group acquires Harvey Nichols in pre-pack deal
Frasers Group has acquired the Harvey Nichols department store from administrators FTI Consulting in a pre-pack deal.
The acquisition includes the retailer’s six stores in Knightsbridge, Manchester, Birmingham, Bristol, Leeds and Edinburgh, as well as its online business, existing inventory and over 1,000 employees.
Subscribe to TRBHarvey Nichols’ international franchise agreements were also part of the transaction, with the franchise stores continuing to trade under existing licensing arrangements.
Frasers Group has also purchased certain assets at the retailer’s Dublin store, including stock and store fixtures, although the group said discussions in relation to the business are ongoing.
The transaction excluded the OXO restaurant, which has been sold to another buyer.
Harvey Nichols has been struggling with a string of losses in recent years and has been facing uncertainty since June when owner Sir Dickson Poon put it up for sale.
Frasers Group said the retailer will require significant restructuring and integration into the group to create a sustainable business for the future. This will include a review and rationalisation of the store portfolio, organisational structure, operating model and cost base.
The group added that it is well positioned to provide Harvey Nichols with the strategic platform and operational expertise required to right-size the business and return it to profitability.
Frasers Group chief executive officer Michael Murray said: “Harvey Nichols is an iconic British institution with significant potential, but it is clear meaningful change is needed.
“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.
“By integrating Harvey Nichols into our existing luxury ecosystem, we believe Frasers Group can deliver the expertise, infrastructure and commitment needed to give the business the best chance of long-term success.”
Harvey Nichols chief executive officer Julia Goddard said: “Today marks an important milestone for Harvey Nichols and provides a strong platform for the next phase of the business’s evolution under the ownership of Frasers Group.
“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.
“I look forward to working closely with Frasers Group to build on the momentum already underway, driving sustainable growth through greater operational efficiency and enhanced infrastructure, and continued investment into customer experiences to ensure Harvey Nichols remains a distinct and relevant luxury destination for both our customers and brands.”
