Frasers Group has acquired luxury department store chain Harvey Nichols from the administrators FTI Consulting for an undisclosed price.
The acquisition includes Harvey Nichols’ portfolio of six stores including the newly refurbished Knightsbridge London flagship, Manchester, Birmingham, Bristol, Leeds and Edinburgh, together with the brand’s online business.
Harvey Nichols’ international franchise agreements form part of the transaction and international franchise stores will continue trading under existing licensing arrangements.
Certain assets located at the Dublin store including stock and store fixtures have been acquired as part of the transaction. The transaction excludes the OXO restaurant which has been sold to another buyer.
Michael Murray, chief executive officer of Frasers Group, said: “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. 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.”
Julia Goddard, chief executive officer of Harvey Nichols, 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.”
