Key facts
- Next and Frasers Group are preparing to submit takeover bids for Harvey Nichols.
- Frasers Group's participation in the sale process was recently confirmed.
- Harvey Nichols has been owned by Sir Dickson Poon since 1991.
- The luxury department store reported widened pre-tax losses of £35.3m for the year ending March 30, 2024.
- Other interested parties from Turkey, Qatar, and the US have also expressed interest.
Next and Mike Ashley's Frasers Group are poised to submit takeover bids for the luxury department store Harvey Nichols. Frasers Group's entry into the sale process, confirmed this week, sets the stage for a potential bidding war for the retailer, which has been owned by Hong Kong businessman Sir Dickson Poon since 1991.
Harvey Nichols informed brand partners that Frasers Group would be allowed to participate in the auction, a development that has "evolved" the sale situation. This move intensifies competition for the loss-making business, which has struggled with weaker luxury demand, reduced footfall, and the removal of tax-free shopping for international visitors.
The retailer's pre-tax losses widened to £35.3 million in the year ending March 30, 2024, compared to £21.3 million the previous year, with revenue falling to £204.9 million from £216.6 million. Expansion beyond its Knightsbridge flagship, including stores in Birmingham, Manchester, Leeds, and Dublin, has also underperformed.
Chief executive Julia Goddard is currently overseeing a multimillion-pound refurbishment of the flagship store and has introduced new brands to refresh its offerings. Despite concerns reportedly raised by some luxury brands stocked by Harvey Nichols, Frasers Group's participation is expected to heat up the competition for the business.