Mike Ashley's Frasers Group approved to join Harvey Nichols auction

Eleanor Harmsworth Tue, July 14, 2026 at 10:27 AM PDT | 3 min read

• FRAS.L +1.06%

Mike Ashley has entered the auction for Harvey Nichols despite a backlash from the store's luxury suppliers over his involvement.

The retail tycoon's Frasers Group has been approved to participate in the sale after convincing the department store to drop its initial opposition to a possible bid.

Harvey Nichols had reportedly told luxury brands that Mr Ashley – best known for his Sports Direct empire – would not be permitted to enter the sale after they had raised concerns about his possible involvement, according to Sky News.

But on Tuesday the department store backtracked and said it was "now obliged to allow Frasers Group to participate in the process alongside the other interested parties."

The brand was put up for sale last month by Sir Dickson Poon, a Hong Kong billionaire who has owned the chain for 35 years, with years of losses and mounting debts.

Frasers has been linked to a purchase of some or all of Harvey Nichols's regional stores in Birmingham, Manchester, Leeds, Edinburgh and Bristol.

However, a move for the entire group would also involve its flagship Knightsbridge store, which accounts for a disproportionate share of sales.

Other interested buyers include Next, another major British retailer, which is also considering a move for the chain.

Harvey Nichols's board is also understood to be pushing for an international buyer to help the company expand its presence in overseas luxury markets.

Heavy Losses

Founded in 1831, Harvey Nichols became a symbol of 1990s luxury after featuring prominently in the BBC sitcom Absolutely Fabulous.

However, Sir Dickson, 68, is scrambling to sell after five years of heavy losses.

• The company lost £34m in the year to March 2024, up from £20.4m a year earlier.
• This marked a fifth consecutive year in the red.

The backdrop for luxury retailers in the UK has also deteriorated, with:

• The removal of VAT-free shopping for tourists after Brexit.
• A scaling back of non-dom tax perks, which has dented spending by wealthy international visitors.

Ashley's Growing Portfolio

A move for Harvey Nichols, nicknamed "Harvey Nicks," would be the latest takeover by Mr Ashley, who also owns House of Fraser.

• Frasers recently had a £2.3bn takeover offer for Hugo Boss rejected, with the German fashion giant saying it was "inadequate."
• The company's board said the €38-a-share (£32.40) offer undervalued the retailer and urged shareholders to reject the proposal.
• Boohoo – which renamed itself Debenhams last year – has also been locked in a bitter row with Frasers, which owns a significant stake in the business.

In its annual report, Boohoo blocked shareholders such as Frasers from voting on executive pay because of a "significant" investor seeking to "disrupt the group's growth strategy and operations rather than maximise its future success."

Advisory and Comment

FTI Consulting is advising on the UK process alongside Derya Akyuz, a global strategic adviser specialising in international markets.

Harvey Nichols and Frasers Group declined to comment.

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