Mike Ashley’s Frasers Group is close to sealing a rescue deal for struggling department store chain Harvey Nichols, according to sources.
The Sports Direct owner could make an announcement on Thursday that it has acquired the upmarket retailer in a pre-pack insolvency process.
Mr Ashley’s team has been engaged in detailed talks with FTI Consulting, the adviser to Harvey Nichols and its standby administrator, says Sky News. It is likely to involve the retention of a large number of the 1,200 staff.
The proposed deal is thought to include a commitment to outstanding payments to brand partners of the department store chain, following a controversy over its acquisition of Matchesfashion, an upmarket online clothing retailer, in 2024.
Next is also interested in Harvey Nichols, but it is understood it would not be prepared to take on all of its stores.
There have been reports in recent weeks that Frasers may rebrand some of the stores as Flannels or House of Fraser.
Harvey Nichols has been loss-making for several years and while it remains a key luxury shopping destination, its glory days of the 1990s and 2000s are long gone.
Owned by Hong Kong billionaire Sir Dickson Poon for 35 years, it emerged in recent weeks that a turnaround at the business will require at £50 million to £60m in extra investment.
Acquiring Harvey Nichols would seal Mike Ashley’s reputation as a serial acquirer of distressed businesses at bargain prices.
Last week he said he would be surprised if Harvey Nicols fetched more than £40m.
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