Sports Direct owner Frasers Group has bought luxury department store Harvey Nichols, according to BBC News. The deal puts control of the retailer's six stores — including its flagship in Knightsbridge — as well as the international franchise and the online business into the hands of Mike Ashley's Frasers Group. Stores will continue to operate under their existing licensing, BBC reported.
Deal at a glance
According to BBC News, Frasers Group is taking over the following assets:
- Six Harvey Nichols stores, including the Knightsbridge flagship
- The international franchise
- The Harvey Nichols online business
The transaction follows a severe financial warning from the luxury retailer. Earlier this week, Harvey Nichols warned in its latest accounts that it would need to "cease trading" within a year if it failed to secure new investment, according to BBC News. The company had appointed an administrator in June.
| Business detail | Figure |
|---|---|
| Stores included in the deal | 6, including Knightsbridge flagship |
| Employees | More than 1,000 |
| Premium and luxury brands carried | More than 800 |
| Year founded | 1831 |
| Other store locations | Manchester, Birmingham, Bristol, Leeds, Edinburgh |
Executive reaction
Frasers Group chief executive Michael Murray said the acquisition brings together an "iconic British institution" with a group prepared to make changes. In a statement reported by BBC News, Murray 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."
Harvey Nichols chief executive Julia Goddard said the day marked "an important milestone" for the company and "provides a strong platform for the next phase of the business's evolution." She added, according to BBC News: "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."
Company backgrounds
Harvey Nichols, founded in 1831, carries more than 800 premium and luxury brands and has more than 1,000 employees, according to BBC News. In addition to the Knightsbridge flagship, its stores are located in Manchester, Birmingham, Bristol, Leeds and Edinburgh. Frasers Group, the owner of Sports Direct and controlled by Mike Ashley, will run the business under existing licensing arrangements, which means the stores keep the Harvey Nichols name.
The acquisition marks a change of ownership for a business that had warned it would need to "cease trading" within a year without new investment. Harvey Nichols will continue to trade under its existing licensing, with Frasers Group controlling the physical stores, the international franchise and the digital operation.
Sources:
