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Frasers Group buys department store chain Harvey Nichols
The deal adds six UK stores to Frasers' portfolio, including the Knightsbridge flagship, and the retailer said it will carry out restructuring aimed at restoring profitability.
Frasers Group has acquired department store chain Harvey Nichols from FTI Consulting, the business consulting firm that had been appointed administrator to oversee the sale, according to Yahoo Finance. The UK retail conglomerate, owned by billionaire Mike Ashley, has not confirmed the transaction value, though several media outlets have reported it at £40m, or $53.9m.
Harvey Nichols had been grappling with trading and operational pressures before the sale, the report said. The acquisition brings six UK stores into Frasers' portfolio, including the Knightsbridge flagship in London, plus locations in Birmingham, Bristol, Edinburgh, Leeds and Manchester.
Alongside the physical stores, Frasers is also taking on Harvey Nichols' online operation, current stock and a workforce exceeding 1,000. Internationally, the department store chain operates in Doha, Dubai, Hong Kong, Kuwait and Riyadh, and franchise agreements have transferred as part of the acquisition, with franchise stores continuing under their existing licensing terms.
Frasers also received certain Dublin store assets in Ireland, such as stock and fixtures, while talks about the wider Dublin operation have not been concluded. The company said the Harvey Nichols business will undergo significant restructuring across the store network, organizational setup, operating model and cost structure as it works to bring the retailer back to profitability.