Frasers Group has acquired Harvey Nichols out of administration and immediately warned that \u201ctough choices\u201d could result in the luxury retailer becoming a smaller business.<\/p>\n
The Shirebrook headquartered retail group has bought Harvey Nichols from administrators FTI Consulting for an undisclosed sum.<\/p>\n
The deal includes six UK stores in London, Manchester, Birmingham, Bristol, Leeds and Edinburgh, as well as its online operation, stock and more than 1,000 employees.<\/p>\n
Harvey Nichols\u2019 international franchise agreements are also included, while Frasers has acquired certain assets, including stock and fixtures, at its Dublin store. Discussions over the Dublin operation are continuing.<\/p>\n
The OXO restaurant is excluded from the deal after being sold to another buyer.<\/p>\n
Frasers said Harvey Nichols has faced \u201csustained trading and operational challenges\u201d and warned that significant restructuring would be required to return the business to profitability.<\/p>\n
That will include a review and potential rationalisation of Harvey Nichols\u2019 store estate, organisational structure, operating model and cost base.<\/p>\n
Michael Murray, chief executive of Frasers Group, said: \u201cHarvey Nichols is an iconic British institution with significant potential, but it is clear meaningful change is needed.<\/p>\n
\u201cThe 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.<\/p>\n
\u201cBy integrating Harvey Nichols into our existing luxury ecosystem, we believe Frasers Group can deliver the expertise, infrastructure and commitment needed to give the business the best chance of long-term success.\u201d<\/p>\n
The acquisition further expands Frasers\u2019 luxury retail interests, which already include Flannels, The Webster and HULCAN\u2019s MILE.<\/p>\n
Harvey Nichols, which traces its history back almost 200 years, sells more than 800 premium and luxury brands and has relationships with names including Gucci, Moncler, Burberry, Prada and Dior.<\/p>\n
The sale was completed following the appointment of FTI Consulting as administrators.<\/p>\n
Harvey Nichols chief executive Julia Goddard said: \u201cToday marks an important milestone for Harvey Nichols and provides a strong platform for the next phase of the business\u2019s evolution under the ownership of Frasers Group.<\/p>\n
\u201cOver 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.\u201d<\/p>\n
She added that the focus would now be on improving operational efficiency and infrastructure while continuing to invest in the customer experience.<\/p>\n
The acquisition ends 35 years of ownership by Hong Kong businessman Sir Dickson Poon and puts one of Britain\u2019s best-known luxury retail names into the hands of Frasers as it attempts another high-profile turnaround.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Shirebrook headquartered retail group has bought Harvey Nichols from administrators FTI Consulting for an undisclosed sum<\/p>\n","protected":false},"author":25,"featured_media":2158793,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,47995],"coauthors":[95],"class_list":["post-2158792","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-news","category-retail","tag-featured-story","tag-national"],"yoast_head":"\n