Mike Ashley’s Frasers Group takes control of the British luxury department store through a pre-pack administration after Harvey Nichols reported a £48.7 million loss
Frasers Group has acquired Harvey Nichols out of insolvency, taking control of the British luxury department store chain from longtime owner Dickson Poon after beating rival retailer Next in the sale. The transaction gives Frasers ownership of Harvey Nichols’ flagship in London’s Knightsbridge, its regional stores, online business, and more than 1,000 employees.
The deal includes the 200,000-square-foot Knightsbridge flagship, located near Harrods, as well as Harvey Nichols stores in Edinburgh, Leeds, Birmingham, Manchester, and Bristol. The retailer’s online operations are also included in the transaction.
Frasers, which owns Sports Direct, Flannels, and House of Fraser, structured the acquisition as a pre-pack administration, a UK insolvency process in which the sale of a company’s assets is negotiated before administrators are formally appointed. The structure can allow businesses to continue operating while unwanted debt is written off, although such transactions have historically drawn scrutiny from creditors.
Harvey Nichols had faced sustained pressure from rising operating costs, the shift toward online shopping, and competition from established luxury department stores including Harrods and Selfridges. Poon, who had owned the business for 35 years, appointed FTI Consulting several months ago to explore a sale. For the year ended March 2025, Harvey Nichols reported a £48.7 million loss, according to accounts filed with Companies House.
Despite its financial difficulties, Harvey Nichols has retained a strong position within British luxury retail. The retailer became associated with fashion and popular culture during its 1990s heyday, including through its connection to Princess Diana and its appearance in the BBC sitcom Absolutely Fabulous. In 2017, it secured the exclusive UK retail partnership for Rihanna’s Fenty Beauty, while its Knightsbridge flagship was later featured in Channel 5’s Inside documentary series.
The acquisition marks another major department store investment for Frasers, although the group’s record in the sector has been mixed. Frasers lost at least £150 million following its acquisition of Debenhams out of insolvency, while its ownership of House of Fraser has resulted in a significantly reduced high-street footprint. Matches Fashion, the online luxury retailer acquired by Frasers in 2024, collapsed three months after the transaction.
The Harvey Nichols deal comes as Frasers has increased its exposure to luxury. The group recently acquired a stake in Burberry and is the second-largest shareholder in Mulberry, while it remains the largest investor in Hugo Boss, where it has previously pushed for strategic change before launching a takeover offer.
Frasers was founded by Mike Ashley, 61, who controls more than two-thirds of the company. The group is led by chief executive Michael Murray, Ashley’s son-in-law. The acquisition of Harvey Nichols adds another established luxury retail name to Frasers’ growing portfolio as the group continues to expand its position across the premium and luxury segments.