Key facts
- Harvey Nichols directors have warned the company faces collapse without a rescue deal.
- The luxury department store chain could cease trading if a sale and additional funding are not secured.
- Frasers Group, owned by Mike Ashley, is reportedly leading the race to acquire the company.
- Harvey Nichols reported a turnover of £46.6m and pre-tax losses widened to over £14m for the year to March 2025.
- Potential buyers are being asked to commit between £50m and £60m for turnaround efforts.
Harvey Nichols directors have warned that the luxury department store chain faces collapse without a rescue deal or additional funding, potentially ceasing trading within the next year. The company's Hong Kong-based owner, Dickson Poon, put it up for sale in June.
Frasers Group, the retail empire founded by Mike Ashley, is reportedly leading the race to acquire Harvey Nichols, with Ashley describing the business as being in a "death spiral." Potential buyers are being asked to commit between £50m and £60m for turnaround efforts, though Ashley suggested a sale price of less than £40m.
In its latest accounts for the year to March 2025, Harvey Nichols reported a 5% decline in turnover to £46.6m and pre-tax losses widened to over £14m. The company has not made a profit since the coronavirus pandemic impacted foreign tourist spending.
Fellow FTSE 100 retailer Next had also shown interest but has since withdrawn. Harvey Nichols, founded in 1831, has struggled to adapt to increased competition and the rise of online retail.