Frasers Group buys Harvey Nichols out of administration

Frasers Group, the owner of Sports Direct, has acquired Harvey Nichols out of administration on August 13, 2026, for an undisclosed sum. The upmarket department store chain had warned it could run out of money within a year without new funding.

The deal covers Harvey Nichols' five large UK stores in London, Edinburgh, Birmingham, Leeds and Manchester, along with its 1,200 employees. Discussions over the future of the Dublin store are ongoing, while franchise agreements for overseas outlets in Riyadh, Dubai, Doha, Kuwait and two in Hong Kong will continue. The chain's restaurant in the Oxo Tower in London is not included and is being sold separately.

Harvey Nichols, founded in 1831 as a linen shop and a symbol of 1990s chic, has struggled since the coronavirus pandemic reduced spending by foreign tourists. It reported a loss after tax of £105 million for the year to March 29, 2025, after writing off inter-company loans, according to accounts published over the weekend. The directors warned the company was not a going concern and had received a number of bids.

Frasers Group said significant restructuring and integration will be required, including a review of the store portfolio, organisational structure and cost base. The group previously bought House of Fraser out of administration in 2018 and has since closed about 40 of its then 60 stores. Frasers has also built interests in luxury fashion through the Flannels chain and stakes in Hugo Boss and Mulberry.

Harvey Nichols was put up for sale by long-term owner Dickson Poon, who bought it in 1991 for £53 million and listed it on the London Stock Exchange in 1996. The Knightsbridge store opened in 1889 and was previously owned by the Burton Group. FTSE 100 retailer Next had shown interest but only in one or two stores, making Ashley's bid more attractive.

Frasers Group chief executive Michael Murray called Harvey Nichols an iconic British institution with significant potential but said meaningful change is needed. Controlling shareholder Mike Ashley told the Financial Times on Friday that the chain was in a "death spiral" and turning it around would be a "huge challenge."