Ashley in talks to lure brands back to Harvey Nichols – Daily Business

Frasers Group is attempting to persuade a number of big beauty brands back into Harvey Nichols after they withdrew from the stores over payment concerns, according to a report.

Mike Ashley’s retail group, which acquired the upmarket chain in the summer, has approached brands such as L’Oréal’s luxury portfolio, including Armani, Yves Saint Laurent Beauté and Lancôme, which pulled out ahead of the deal.

Estée Lauder-owned labels including Tom Ford, La Mer and Estée Lauder also withdrew before its collapse, as well as Shiseido-owned Nars. LVMH’s Loewe considered leaving the retailer’s Edinburgh store, according to the The Times which says the label continues to be an “important strategic brand partner”.

A source told the media group that the withdrawal of brands had left “some quite significant gaps [in the beauty hall].”

The department store chain was put up for sale by the Hong Kong billionaire Sir Dickson Poon following years of losses. Frasers fended off Next to acquire the business in August through a pre-pack administration and committed to retaining all the stores.

It quickly changed its plans by announcing that the Bristol and Leeds stores will convert to its Flannels brand, while the store in Birmingham will close in January. The u-turn created uncertainty among its employees in the other remaining stores.

Frasers, which also owns House of Fraser and Flannels, recently increased its stake in Hugo Boss, the German luxury fashion house, to almost 50%. 

Michael Murray, the Frasers chief executive and Ashley’s son-in-law, has said that turning around Harvey Nichols will require “tough choices”, adding: “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.”

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