Mike Ashley buys Harvey Nichols after risk of collapse ‘inside 12 months’
The luxury department store chain has been saved by former Newcastle United owner Mike Ashley, after adding it to his portfolio as part of the Frashers Group
Mike Ashley said he would not’ cry a river’ if he missed out on Harvey Nichols
Mike Ashley’s Frasers Group has bought Harvey Nichols after the department store chain appointed administrators, the Sports Direct owner has announced. The future of iconic British retail store Harvey Nichols was in doubt – and could have had just 12 months left to trade if Ashley hadn’t stepped in.
Earlier this week, we reported how the retail empire could have “ceased trading” if it could not secure a sale and no extra funding materialised. But now The Frasers Group, the owner of Sports Direct and Flannels, has stepped in to safe the iconic brand.
The Frasers Group chief executive, Michael Murray, said: “Harvey Nichols is an iconic British institution with significant potential, but it is clear meaningful change is needed.
The brand has been saved(Image: OGULCAN AKSOY via Getty Images)
“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.”
The Harvey Nichols chief executive, Julia Goddard, said: “I look forward to working closely with Frasers Group to build on the momentum already under way, driving sustainable growth through greater operational efficiency and enhanced infrastructure, and continued investment into customer experiences to ensure Harvey Nichols remains a distinct and relevant luxury destination for both our customers and brands.”
The department store’s prospective buyers had been required to pledge between £50m and £60m(Image: palliki via Getty Images)
The group witnessed turnover drop by five per cent to £46.6m in the year to March 2025, while its pre-tax loss expanded to more than £14m. Should Harvey Nichols fail to secure a buyer it would need to obtain emergency funding or face potential collapse within a year, the board warned.
The department store’s prospective buyers had been required to pledge between £50m and £60m to support the group’s recovery plans as part of any offer. However, Ashley informed the Financial Times that he was anticipating a bargain deal last week. Harvey Nichols will probably be sold for under £40m, he suggested.
