Frasers Group acquires Harvey Nichols
Frasers Group has acquired Harvey Nichols from administrators FTI Consulting, with the deal including the luxury retailer’s store estate, online business, existing inventory, and employees.
Harvey Nichols’ current portfolio comprises six stores, including the newly-refurbished Knightsbridge London flagship as well as locations in Manchester, Birmingham, Bristol, Leeds, and Edinburgh.
The retailer has faced a number of trading and operational challenges in recent years. Frasers Group said significant restructuring and integration of the business into the wider group will be required to create a sustainable business for the future, including a review and rationalisation of the store portfolio, organisational structure, operating model, and cost base. Frasers Group said it is “uniquely positioned to provide Harvey Nicholls with the strategic platform and operational expertise required to right size the business and return it to profitability”.
Harvey Nichols’ international franchise agreements also form part of the transaction and international franchise stores will continue trading under the existing licensing arrangements.
Michael Murray, Frasers Group chief executive officer, 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, added: “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.
“I am incredibly proud of what our teams have achieved and grateful for the commitment and resilience they have shown throughout this period of uncertainty, which has laid the foundations for this next chapter.”