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Harvey Nichols Acquired by Frasers After Collapse Warning
Frasers Group bought Harvey Nichols for about £40M after the 195-year-old luxury retailer warned it could collapse within a year without new investment.
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Harvey Nichols, the 195-year-old British luxury department store, was acquired by Mike Ashley's Frasers Group on Aug. 13 through a pre-pack administration. The deal came after Dickson Poon, the Hong Kong businessman who owned the retailer since 1991, warned it could collapse within a year without new investment.
The transaction includes Harvey Nichols' six U.K. stores, its online business, existing inventory, and more than 1,000 employees. International franchise agreements are also covered. The OXO Tower restaurant in London was excluded. The Dublin location's future remains under discussion.
Frasers Group has not disclosed the purchase price. Multiple reports put the value at about £40 million ($54 million), Forbes reported.
Harvey Nichols reported a £105 million ($142 million) loss after tax for the year ended March 29, 2025, after writing off inter-company loans, according to the company's annual report. Revenue fell from £204.8 million to £184.8 million. Pre-tax losses widened from £34 million to £49 million. Accumulated pre-tax losses over five years reached more than £140 million.
The retailer had not returned to profit since the Covid pandemic. Weaker consumer demand, higher operating costs, online competition, and the end of tax-free shopping for tourists in the U.K. all weighed on the business.
Poon put Harvey Nichols up for sale in June 2026 after 35 years of ownership. Multiple potential buyers expressed interest, but some withdrew. Frasers Group emerged as the successful buyer.