US Markets
Home›US Markets›M&A & Deals›Frasers Group buys Harvey Nichols from administrators
Frasers Group buys Harvey Nichols from administrators
The deal follows Harvey Nichols' warning that it would need to cease trading within a year without new investment.
Frasers Group, the owner of Sports Direct, has bought luxury department store chain Harvey Nichols out of administration, taking control of the retailer's stores and its international franchise.
Frasers chief executive Michael Murray said the turnaround would require meaningful change, adding that the company is prepared to make tough decisions, even if it means a smaller business in the near term, to build a more sustainable Harvey Nichols. The retailer carries more than 800 premium and luxury brands and employs over 1,000 people, with other sites in Manchester, Birmingham, Bristol, Leeds and Edinburgh.
The acquisition covers the flagship location in Knightsbridge and includes the online business, while stores are expected to continue operating under existing licensing. Frasers said it will conduct a review of Harvey Nichols' portfolio, structure and cost base, after the company faced sustained trading and operational challenges.
Earlier this week, Harvey Nichols warned in its latest accounts that it would need to cease trading within a year if it could not secure new investment, prompting the sale process. Frasers said the transaction marks an important milestone for the business's next phase, after progress in repositioning the brand and investing in the flagship store.