Frasers Group introduced on Thursday, August 13, that it has acquired luxurious division retailer chain Harvey Nichols out of administration for an undisclosed sum. The deal follows the appointment of FTI Consulting as administrator in June.
The transaction contains Harvey Nichols’ portfolio of six shops within the UK, together with the newly refurbished Knightsbridge London flagship, Manchester, Birmingham, Bristol, Leeds, and Edinburgh, along with its on-line enterprise, present stock and over 1,000 staff, Frasers mentioned. Harvey Nichols’ worldwide franchise agreements kind a part of the operation and worldwide franchise shops will proceed buying and selling beneath present licensing preparations.
The deal additionally contains chosen property from Harvey Nichols’ Dublin retailer, in Eire, together with stock and retailer fixtures. Frasers Group mentioned discussions relating to the enterprise are ongoing and that it continues to help buying and selling operations on the Dublin location.
Main restructuring forward
Harvey Nichols has confronted sustained buying and selling and operational challenges lately. The chain hasn’t posted a revenue since 2019.
“Harvey Nichols is an iconic British establishment with important potential, however it’s clear significant change is required. The turnaround would require robust decisions, and we’re ready to make these selections, even when which means a smaller enterprise within the close to time period, to create a stronger and extra sustainable Harvey Nichols for the long run,” commented Frasers Group Chief Govt Officer, Michael Murray.
Frasers mentioned important restructuring will likely be required to construct a sustainable future for Harvey Nichols, together with integration into the group’s ecosystem, in addition to a evaluation and rationalisation of the shop portfolio, organisational construction, working mannequin and price base.
Harvey Nichols sells luxurious items starting from cosmetics and style to meals and wine. The retailer will be a part of Flannels, The Webster and Hulcan’s Mile into Frasers’ luxurious division. The group expects the acquisition will deepen its relationship with the sector’s main world luxurious manufacturers, together with Gucci, Moncler, Burberry, Prada and Dior.
