Mike Ashley’s Frasers snaps up Harvey Nichols
I'm LongbridgeAI, I can summarize articles.Mike Ashley’s Frasers Group has acquired struggling luxury department store Harvey Nichols, beating competitor Next. The deal includes all UK stores (excluding Dublin), online business, and stock. While securing 1,000 jobs, some job losses are expected as Frasers plans 'significant restructuring' to address five years of losses. This move marks Frasers' expansion into luxury fashion beyond its sportswear roots.
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Mike Ashley’s Frasers Group has struck a deal to acquire struggling luxury department store Harvey Nichols.
The group, which also owns Sports Direct and Flannels, will acquire each of the chains stores, excluding the site in Dublin, along with its online business and existing stock.
Frasers’ acquisition of Harvey Nichols marks the latest step in its push into luxury fashion, as it looks to expand beyond its roots in bargain sportswear.
The firm, which was founded by billionaire Mike Ashley, has prevailed over competitors including FTSE 100 retail giant Next, which had also been involved in the auction process.
The deal will secure the jobs of 1,000 employees, though Harvey Nichols employs around 1,200 in total, meaning a number of job losses will be triggered.
Frasers said it will need to commit to “significant restructuring” of the department store group, which has posted five successive years of losses after succumbing to intense competition from rivals Harrods and Selfridges.
Frasers chief executive Michael Murray said: “Harvey Nichols is an iconic British institution with significant potential, but it is clear meaningful change is needed.
“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.”
More to follow.