Frasers Group confirms acquisition of Harvey Nichols

British retail giant Frasers Group has acquired Harvey Nichols from FTI Consulting, taking control of six UK stores, its online business, inventory, franchise agreements and more than 1,000 employees.

The deal covers Harvey Nichols’ newly refurbished Knightsbridge flagship and stores in Manchester, Birmingham, Bristol, Leeds and Edinburgh. All six locations will continue trading until further notice.

The transaction also includes the department store’s international franchise agreements, with stores continuing to operate under their existing licensing arrangements.

In Dublin, Frasers has acquired the store’s stock and fixtures, while discussions over the future of the business remain ongoing. Frasers will continue to support its operations in the meantime.

The acquisition follows FTI Consulting’s appointment as administrator in June. Founded in 1831, Harvey Nichols stocks more than 800 premium and luxury brands.

Frasers prepares Harvey Nichols restructuring

Frasers said Harvey Nichols had experienced sustained trading and operational difficulties, prompting the need for extensive restructuring and integration into the group. The process will include a review of its store portfolio, organisational structure, operating model and cost base.

Michael Murray, Chief Executive Officer of Frasers Group, 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."

The retailer’s latest accounts highlighted its financial difficulties.

The retailer’s latest accounts highlighted its financial difficulties. For the full group revenue fell £184.8 million from £204.8 million in the year to the end of March 2025, while losses before tax widened to £49 million from £34 million. Its London store saw sales drop from £78 million to just under £69.5 million in the same period.

Directors concluded that Harvey Nichols was unlikely to trade normally during the next 12 months, so the accounts were prepared on a non-going-concern basis. It was the retailer’s fifth consecutive loss-making year, as covered in our report on its financial position.

Prospective buyers had reportedly been asked to provide between £50 million and £60 million over the medium term to fund a recovery programme. Frasers founder and major shareholder Mike Ashley previously described reviving the business as a "huge challenge".

Harvey Nichols joins Frasers’ luxury portfolio

The acquisition extends Frasers’ Elevation Strategy and places Harvey Nichols alongside Flannels in its luxury division. The portfolio also contains The Webster and Hulcan's Mile.

Frasers expects the deal to deepen its relationships with brands including Gucci, Moncler, Burberry, Prada and Dior. The group said it would work with Harvey Nichols’ senior management to support brand partners during the restructuring.

Harvey Nichols Chief Executive Officer Julia Goddard said: “Today marks an important milestone for Harvey Nichols and provides a strong platform for the next phase of the business’s evolution under the ownership of Frasers Group.”

Goddard, who joined in June 2024, has overseen investment in the Knightsbridge flagship and changes to the retailer’s customer proposition. She will remain involved as Harvey Nichols and Frasers develop the turnaround plan.