13th Aug 2026 13:46
(Alliance News) - Frasers Group PLC said on Thursday "tough choices" lay ahead after it announced the acquisition of Harvey Nichols from its adviser FTI Consulting LLP for an undisclosed sum.
The purchase by the owner of the Sports Direct, Flannels and Frasers retail chains includes Harvey Nichols' portfolio of six department stores including the Knightsbridge London flagship, Manchester, Birmingham, Bristol, Leeds, and Edinburgh, together with its online business, existing inventory and over 1,000 employees.
Harvey Nichols' international franchise agreements form part of the transaction and international franchise stores will continue trading under existing licensing arrangements.
Some assets located at the Dublin store including stock and store fixtures have been acquired as part of the transaction. Discussions in relation to the business are ongoing and Frasers continues to support the trading operations of the Dublin store.
The transaction excludes the OXO restaurant on London's South Bank which has been sold to another buyer.
In a statement, Shirebrook, Derbyshire-based Frasers noted Harvey Nichols has faced "sustained trading and operational challenges in recent years".
"Significant restructuring and integration of Harvey Nichols into the Frasers Group ecosystem will be required to create a sustainable business for the future, including a review and rationalisation of the store portfolio, organisational structure, operating model and cost base," Frasers said.
This will "require tough choices, and we are prepared to make those decisions, even if that means a smaller business in the near term," said Chief Executive Michael Murray.
Frasers owns House of Fraser department stores, luxury designer fashion retailer Flannels, and sports retailer, Sports Direct. In July, it said its takeover offer for German fashion label Hugo Boss AG was unconditional, after receiving clearance from the European Commission.
Press reports said clothing and homewares retailer Next PLC also was interested in buying Harvey Nichols, along with unnamed international bidders.
Shares in Frasers were up 1.6% at 817.00 pence each in London on Thursday. The company has a market capitalisation of GBP3.66 billion.
By Jeremy Cutler, Alliance News reporter
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