Harvey Nichols warns it could collapse within a year without rescue deal or buyer

Published Aug 9, 05:45 PM UTC

Harvey Nichols, the luxury department store chain, has warned it could collapse within a year unless it secures a rescue deal or finds a buyer. Newly filed accounts reveal the retailer will cease trading unless sold or refinanced. Owner Sir Dickson Poon put the chain up for sale in June, and Mike Ashley's Frasers Group has emerged as the front-runner, with a potential deal expected soon. The Knightsbridge flagship store accounts for a disproportionate share of sales, while regional outlets struggle. Directors noted some bids would require administration before sale, potentially leading to a break-up. Sales at the flagship store fell from £78.1m to £69.4m year-on-year, hit by inflation, currency movements, and the cost-of-living squeeze. The abolition of VAT-free shopping for tourists and changes to non-dom tax rules have also pressured luxury retailers.