Key facts
- Harvey Nichols has warned it faces collapse within a year without new investment.
- The luxury department store reported a pre-tax loss of £105m for the year to March 29, 2025.
- Mike Ashley's Frasers Group is reportedly in the final stages of a rescue deal.
- Ashley plans to retain the Knightsbridge and Edinburgh flagship stores.
- The company's owner, Dickson Poon, put the business up for sale in June.
Luxury department store chain Harvey Nichols has issued a stark warning that it may not survive another year without new investment, as Mike Ashley's Frasers Group reportedly moves to finalize a rescue deal.
The retailer's Hong Kong-based owner, Dickson Poon, placed the company up for sale in June. Frasers Group, controlled by founder Mike Ashley, is understood to be among the frontrunners, with reports suggesting a bid of around £40 million.
Harvey Nichols has struggled to adapt to increased competition from online retailers and other shopping destinations, failing to make a profit since the pandemic impacted international tourism. According to accounts published recently, the company reported a loss after tax of £105 million for the year ending March 29, 2025, after writing off inter-company loans. The directors have explicitly warned that the company is not a going concern, anticipating it will run out of money within the next year without securing new funding.
While other potential bidders, such as FTSE 100 retailer Next, had shown interest, they have since withdrawn. Ashley himself described Harvey Nichols as being in a "death spiral" but acknowledged the significant challenge of turning the business around. He has a history of acquiring struggling premium brands and indicated that if his bid is successful, the Knightsbridge and Edinburgh stores would be retained, with other locations potentially rebranded under his existing Frasers Group banners like House of Fraser or Flannels.
Founded in 1831 as a linen shop, Harvey Nichols opened its Knightsbridge department store in 1889. The brand has previously been owned by Debenhams and the Burton Group before Poon acquired it in 1991 for £53 million. Poon oversaw an expansion, including a Leeds branch in 1996, and the chain now includes stores in Birmingham, Bristol, Dublin, Edinburgh, and Manchester, alongside international locations in Riyadh, Dubai, Hong Kong, and Kuwait. Julia Goddard leads Harvey Nichols, having joined in 2024.