Frasers Group acquires struggling luxury retailer Harvey Nichols

Published Aug 13, 12:21 PM UTC

Mike Ashley's Frasers Group has acquired Harvey Nichols, the struggling luxury department store chain, through a pre-pack administration process, saving it from insolvency. The deal, which excludes the Dublin store, secures over 1,000 jobs but implies some job losses as Harvey Nichols employs around 1,200. Frasers Group, which also owns Sports Direct and Flannels, outbid competitors including FTSE 100 retailer Next. The acquisition is part of Frasers' broader 'elevation strategy' to expand into luxury fashion, following recent bids for Mulberry and Hugo Boss. Frasers CEO Michael Murray acknowledged that 'significant restructuring' is needed, as Harvey Nichols has posted five consecutive years of losses amid intense competition from Harrods and Selfridges. Ashley had previously described the chain as being in a 'death spiral' and expected the sale price to be under £40 million.