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Harvey Nichols warns it cannot survive another year without investment
The company said it is not a going concern and expects to run out of money within a year, after reporting a £105m loss for the year to 29 March 2025.
Harvey Nichols has warned that it could collapse without a rescue deal as bidders circle for the Knightsbridge-headquartered department store chain, with new investment needed to avoid running out of money.
According to accounts published over the weekend, the Hong Kong-based owner, Dickson Poon, put the business up for sale in June, and Mike Ashley’s Frasers Group is aiming to buy it for about £40m. The retailer has not been profitable since the coronavirus pandemic locked out foreign tourists, and it reported a loss after tax of £105m for the year to 29 March 2025 after writing off inter-company loans.
The company’s directors said it is not a going concern, citing no agreements for new funding, and added that it has received a number of bids with a goal of completing a deal within the next year. The Guardian Business also reported that Next had been interested in taking over but later withdrew its interest.
Mike Ashley, controlling shareholder in Frasers, told the Financial Times that Harvey Nichols is in a “death spiral” and that turning it around would be a huge challenge, according to the report. Ashley said he would keep the Knightsbridge and Edinburgh stores and rebrand other locations as House of Fraser or Flannels under the Frasers Group.