Frasers Group has acquired Harvey Nichols from FTI Consulting, which was appointed as administrators for the company, including all six of its UK stores, online business and existing inventory.
In a statement, Frasers Group said that Harvey Nichols has faced “sustained trading and operational challenges” in recent years and warned that “significant restructuring and integration” will be required.
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The confirmation follows weeks of speculation that also saw rival retail chain Next step forward as a possible buyer.
International franchise agreements are also included in the deal, as well as more than 1,000 employees and “certain assets” from the brand’s Dublin store.
Frasers said it intends to undertake a “review and rationalisation” of Harvey Nichol’s store portfolio, organisational structure, operating model and cost base.
‘Tough choices’ ahead for Harvey Nichols
“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,” comments Michael Murray, CEO at Frasers Group.
“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.”
Frasers Group added that the deal builds on its “elevation strategy”, which aims to strengthen its luxury positioning.
Harvey Nichols CEO, 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.”
