UK retail giant bought by Mike Ashley's Frasers Group in 'major milestone' for high street
An iconic British retailer giant has been acquired by Mike Ashley's Frasers Group, representing a "major milestone" for the country's high streets.
This afternoon, the group confirmed that it had bought department store chain Harvey Nichols from FTI Consulting LLP.
Said acquisition includes Harvey Nichols' portfolio of six stores, including the newly refurbished Knightsbridge London flagship, Manchester, Birmingham, Bristol, Leeds, and Edinburgh.
Furthermore, Mr Ashley's company will own the chain's online business, existing inventory and over 1,000 employees.
However, Harvey Nichols' international franchise agreements form part of the transaction and international franchise stores will continue trading under existing licensing arrangements.
Julia Goddard, Harvey Nichols' chief executive officer, said: "Today marks an important milestone for Harvey Nichols and provides a strong platform for the next phase of the business's evolution under the ownership of Frasers Group.
"Over the past year, we have made significant progress in repositioning this iconic business, investing in our flagship store, broadening our customer proposition, and strengthening the brand DNA."
Michael Murray, Frasers Group's chief executive officer, added: "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.
"By integrating Harvey Nichols into our existing luxury ecosystem, we believe Frasers Group can deliver the expertise, infrastructure and commitment needed to give the business the best chance of long-term success."
Earlier this week, Harvey Nichols warned that without a rescue deal, the luxury department store faces an uncertain future.
Prior to today's announcement, approximately 1,200 positions are under threat across the business, alongside its entire UK store portfolio.
In its statement announcing their acquisition, Frasers Group said: "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."