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UK-based retail conglomerate Frasers Group — which owns Flannels, The Webster, and Sports Direct — has acquired ailing British department store Harvey Nichols for an undiclosed sum, the company announced today. The acquisition includes Harvey Nichols’ portfolio of six stores including the newly refurbished Knightsbridge London flagship, Manchester, Birmingham, Bristol, Leeds, and Edinburgh, together with its online business, existing inventory and over 1,000 employees, Frasers confirmed.
In July this year, Harvey Nichols — which hasn’t posted a profit since 2019 — told potential investors to submit bids between £50-60 million to continue its recovery plan. Suitors that expressed interest included Frasers, Next, and Modella Capital (owner of Hobbycraft and TGJones, formerly WHSmith). But Frasers Group, which has been on an M&A sweep over the last year, has completed the deal.
“Harvey Nichols is an iconic British institution with significant potential, but it is clear meaningful change is needed,” says Frasers Group chief executive officer, Michael Murray. “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.”
Harvey Nichols owner Sir Dickson Poon purchased the retailer from Burton Group in 1991. But its current image is a far cry from the halcyon ’90s, when it was synonymous with glamour-laden sitcom Absolutely Fabulous and a favored haunt of Princess Diana, Kate Moss, and Marc Jacobs.
Before the bid was accepted, Mike Ashley, Frasers Group founder and chair, told the Financial Times that returning the London retail darling to its former glory would be a big challenge. As such, he suggested ambivalence to winning the bid. “I don’t think I’ll be writing a huge cheque, because you’ve got to think about the future losses,” Ashley said. “If it was a little bit tough before, it is in a death spiral now.”
Frasers confirmed that all Harvey Nichols stores acquired by Frasers Group will continue to trade until further notice, and the group continues to support the trading operations of the Dublin Harvey Nichols store. International franchise agreements also form part of the transaction and international franchise stores will continue trading as normal under existing licensing arrangements.
The Harvey Nichols acquisition comes on the heels of a mass bid-and-buy spree at Frasers Group. On June 10, the company offered Hugo Boss €1.98 billion for a complete buyout, although the brand encouraged shareholders to reject this, deeming it “financially inadequate”. The group also upped its stake in Burberry to 4.2%. Most recently, Frasers bid on Worship Street Estate — a suite of buildings situated between Shoreditch’s tech district and the City of London — with an estimated £75 million.
Flannels — arguably the most similar business format to Harvey Nichols in the Frasers portfolio — grew in fiscal 2026. Whether Harvey Nichols can follow suit will be the big question for Frasers investors.
