Mike Ashley's Frasers Group buys Harvey Nichols

(Sharecast News) - Mike Ashely's Frasers Group confirmed on Thursday that it has bought department store chain Harvey Nichols from FTI Consulting after it went into administration. Frasers, which did not disclose any financial details, said the deal includes Harvey Nichols' portfolio of six stores including the newly refurbished 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.

Frasers said certain assets located at the Dublin store including stock and store fixtures have also been bought as part of the deal. "Discussions in relation to the business are ongoing and Frasers continues to support the trading operations of the Dublin store," it said.

The deal excludes the OXO restaurant, which has been sold to another buyer.

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.

"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."

Frasers already owns House of Fraser, Sports Direct, Flannels and Jack Wills, among others.

At 1330 BST, Frasers shares were up 1.5% at 816.50p.

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