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Frasers Group Admitted to Harvey Nichols Auction

Luxury suppliers warn the move threatens the store’s high-end positioning and raises the prospect of a competitive sale process.

Overview

  • A senior Harvey Nichols memo seen by Sky News said on Tuesday the company was obliged to allow Mike Ashley’s Frasers Group to join the auction for the chain.
  • Several high-end brands that supply Harvey Nichols told reporters they are concerned that a takeover by Frasers could dilute the retailer’s luxury image and disrupt supplier relationships.
  • FTI Consulting is running the sale on behalf of Sir Dickson Poon’s family and Next is among other interested parties, creating the possibility of a bidding contest for ownership.
  • Harvey Nichols has reported five straight years of losses, with turnover to 31 March 2024 at £204.8m and a pre-tax loss of £34m, and Sir Dickson Poon has stepped down from board roles.
  • The group operates about 14 stores and employs roughly 1,200 UK staff, and the next steps to watch are fresh formal offers, updated accounts filings, and brand-supplier negotiations that could affect trading and jobs.