Mike Ashley’s Frasers Group has bought Harvey Nichols after the struggling department store chain fell into administration.
Bosses at Sports Direct owner Frasers said they will now oversee a turnaround at the historic chain, which could see it become a “smaller business” in the short-term.
It comes after an auction process for Harvey Nichols which saw Frasers battle retail rival Next to take control of the brand.
Earlier this week, Harvey Nichols warned in its latest accounts that it would need to “cease trading” within a year if it failed to secure new investment.
The deal includes the brand’s estate of six stores in Knightsbridge London, Manchester, Birmingham, Bristol, Leeds and Edinburgh.
Frasers Group’s 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.”
