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Sports Direct owner buys luxury department store Harvey Nichols
🇬🇧 United Kingdom /Economy & Trade

Sports Direct owner buys luxury department store Harvey Nichols

From BBC News · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources Outcome reported
  • Luxury department store Harvey Nichols has been acquired by Frasers Group, the owner of Sports Direct.
  • The deal includes Harvey Nichols' six stores, its flagship in Knightsbridge, and its international franchise and online business.
  • Frasers Group aims to implement changes to ensure Harvey Nichols' long-term sustainability after the store warned it needed new investment to avoid ceasing trading.

Luxury British department store Harvey Nichols has a new owner: Frasers Group, the company behind Sports Direct. The acquisition encompasses Harvey Nichols' six physical stores, including its prominent Knightsbridge flagship, along with its international franchise operations and online presence. Stores are expected to continue operating under their current licensing agreements.

Harvey Nichols is an iconic British institution with significant potential, but it is clear meaningful change is needed.

— Michael MurrayCommenting on the acquisition and the future direction of the company.

Harvey Nichols, a retailer founded in 1831 and famously featured in the BBC sitcom "Absolutely Fabulous," carries over 800 premium and luxury brands and employs more than 1,000 people. Its other locations are in Manchester, Birmingham, Bristol, Leeds, and Edinburgh. The acquisition comes after the store issued a warning earlier this week, stating it would need to "cease trading" within a year if it failed to secure fresh investment. The luxury retailer had appointed an administrator in June.

Michael Murray, CEO of Frasers Group, acknowledged Harvey Nichols as an "iconic British institution with significant potential." He stated that "meaningful change is needed" and that the group is prepared to make "tough choices" to foster a stronger, more sustainable business for the future, even if it means a smaller operation in the short term. The deal does not include Harvey Nichols' restaurant in London's Oxo Tower, which is being sold separately.

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.

— Michael MurrayOutlining the strategy for restructuring and improving Harvey Nichols.

Julia Goddard, CEO of Harvey Nichols, described the acquisition as "an important milestone" that provides a "strong platform for the next phase of the business's evolution." She highlighted recent progress in repositioning the business, investing in the flagship store, broadening its customer offerings, and strengthening the brand's identity.

This marks an important milestone for the company and provides a strong platform for the next phase of the business's evolution.

— Julia GoddardExpressing optimism about the acquisition and the future prospects of Harvey Nichols.
DistantNews Editorial

Originally published by BBC News in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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