Poundland owner Gordon Brothers joins Harvey Nichols auction
Gordon Brothers, the retail investment firm that owns Poundland and has previously owned Laura Ashley, has submitted an offer to acquire luxury department store Harvey Nichols.
The company lodged its bid ahead of a deadline this week, according to Sky News. Advisers to Harvey Nichols owner Sir Dickson Poon have set a further deadline next week as the 35-year ownership period moves towards a possible sale.
Frasers Group and NEXT are viewed as the leading contenders, while Gordon Brothers and several international parties remain involved. Dubai-based Chalhoub Group and India’s Reliance Retail have also examined potential offers.
Sir Dickson’s family has appointed FTI Consulting to oversee the process, alongside regional advisers tasked with attracting interest from Gulf investors.
Bidders face a £60 million funding requirement
Prospective buyers must consider more than the acquisition price. Harvey Nichols has told bidders they must commit up to £60 million to support its continuing transformation programme.
The funding would be used for the Edinburgh store refurbishment, as well as international expansion, digital development and management’s wider business plan.
Chief Executive Julia Goddard, who joined Harvey Nichols in June 2024, has overseen investment at its Knightsbridge flagship. Goddard has also led investment in the retailer's digital operations, with internal key performance indicators said to be "moving in the right direction" following the initiatives.
Recent work has included a wellness destination on the fourth floor, which Lucy McPhail, Beauty Director at Harvey Nichols, called: "an important step in the continued evolution of our Knightsbridge flagship."
The flagship investment is understood to have improved performance, but the group has now endured five straight years of losses. Revenue fell 5% to £204.8 million in the year to 31 March 2024, while pre-tax losses widened to £34 million.
Harvey Nichols employs about 1,200 people in the UK and runs seven stores in the UK and Ireland. Its large-format locations include London, Edinburgh, Birmingham, Leeds and Manchester, while its international network reaches markets such as Hong Kong, Dubai and Riyadh.
Frasers and NEXT remain in contention
Frasers Group's current beauty portfolio includes Flannels Beauty, as well as its 10.9% stake in THG, the parent company of Cult Beauty and Lookfantastic. On the fashion side it owns Sports Direct and House of Fraser.
A Harvey Nichols executive told suppliers at the time that the company was “obliged to allow Frasers Group to participate in the process alongside the other interested parties”. The memo said its admission was intended to ensure a competitive process and find the right partner for the retailer’s next phase.
NEXT has also assessed the business, although it remains unclear whether it would retain the regional store estate or focus on the Harvey Nichols brand and intellectual property. Both retailers faced an initial 28 July offer deadline, with Frasers expected to advance its bid.
Ownership history
Sir Dickson Poon's Dickson Concepts International bought Harvey Nichols from Burton Group in 1991 for £53 million. The company listed on the London Stock Exchange in 1996 before being taken private again six years later.
Sir Dickson is no longer actively involved in running the group, having stepped down from the Harvey Nichols board and his other European directorships.
In June last year, TheIndustry.fashion took an in-depth look at Harvey Nichols' transformation plans, featuring exclusive commentary on the challenges it faces and expert insights into how it might successfully navigate its transformation.
