Frasers Group confirms acquisition of Harvey Nichols, warns of ‘significant restructuring’

Frasers Group has acquired Harvey Nichols from FTI Consulting, which was appointed arsenic administrators for the company, including each six of its UK stores, online concern and existing inventory.

In a statement, Frasers Group said that Harvey Nichols has faced "sustained trading and operational challenges" successful caller years and warned that "significant restructuring and integration" volition beryllium required.

The confirmation follows weeks of speculation that besides saw rival retail concatenation Next measurement guardant arsenic a imaginable buyer.

International franchise agreements are besides included successful the deal, arsenic good arsenic much than 1,000 employees and "certain assets" from the brand's Dublin store.

Frasers said it intends to undertake a "review and rationalisation" of Harvey Nichol's store portfolio, organisational structure, operating exemplary and outgo base.

'Tough choices' up for Harvey Nichols

"Harvey Nichols is an iconic British instauration with important potential, but it is wide meaningful alteration is needed. The turnaround volition necessitate pugnacious choices, and we are prepared to marque those decisions, adjacent if that means a smaller concern successful the adjacent term, to make a stronger and much sustainable Harvey Nichols for the agelong term," comments Michael Murray, CEO astatine Frasers Group.

"By integrating Harvey Nichols into our existing luxury ecosystem, we judge Frasers Group tin present the expertise, infrastructure and committedness needed to springiness the concern the champion accidental of semipermanent success."

Frasers Group added that the woody builds connected its "elevation strategy", which aims to fortify its luxury positioning.

Harvey Nichols CEO, Julia Goddard added: "Today marks an important milestone for Harvey Nichols and provides a beardown level for the adjacent signifier of the business's improvement nether the ownership of Frasers Group.

"Over the past year, we person made important advancement successful repositioning this iconic business, investing successful our flagship store, broadening our lawsuit proposition, and strengthening the marque DNA.

"I look guardant to moving intimately with Frasers Group to physique connected the momentum already underway, driving sustainable maturation done greater operational ratio and enhanced infrastructure, and continued concern into lawsuit experiences to guarantee Harvey Nichols remains a chiseled and applicable luxury destination for some our customers and brands.

"I americium incredibly arrogant of what our teams person achieved and grateful for the committedness and resilience they person shown passim this play of uncertainty, which has laid the foundations for this adjacent chapter."

"Frasers Group confirms acquisition of Harvey Nichols, warns of 'significant restructuring'" was primitively created and published by Just Style, a GlobalData owned brand.