Frasers Group acquires Harvey Nichols from administrators

Harvey Nichols’ Knightsbridge flagship was refurbished before the sale. Image credit: Harvey Nichols

British retail group Frasers Group is adding a near-200-year-old luxury name to its portfolio.

The company has acquired British department store chain Harvey Nichols from administrators FTI Consulting, taking on six U.K. stores, the luxury retailer’s online business, its existing inventory and more than 1,000 employees. Worth a reported $54 million, the deal covers a portfolio of over 800 premium and luxury brands and Harvey Nichols’ international franchise agreements, with franchise stores continuing to trade under existing licensing arrangements.

“Harvey Nichols is an iconic British institution with significant potential, but it is clear meaningful change is needed,” said Michael Murray, CEO of Frasers Group, in a statement.

“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.”

Into the luxury ecosystem

As part of the deal, Frasers has acquired Harvey Nichols’ Knightsbridge flagship in London, recently refurbished, plus stores in Manchester, Birmingham, Bristol, Leeds and Edinburgh.

Certain assets at the Dublin store, including stock and fixtures, transferred with the deal; discussions over that business continue and Frasers is supporting its trading in the meantime. The OXO restaurant was excluded and sold to a separate buyer.

Frasers Group has added retailers such as MatchesFashion to its portfolio in recent years. Image credit: Frasers Group

The sale was implemented following FTI Consulting’s appointment as administrators. Frasers said Harvey Nichols has faced sustained trading and operational challenges, and that significant restructuring will follow, including a review and rationalization of the store portfolio, organizational structure, operating model and cost base.

“Today marks an important milestone for Harvey Nichols and provides a strong platform for the next phase of the business’s evolution,” said Julia Goddard, CEO of Harvey Nichols, in a statement.

“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.”