![\"Harvey](\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2020\/08\/Harvey-Nichols.png\")
Mike Ashley\u2019s\u00a0Frasers Group\u00a0is close to sealing a rescue deal for struggling department store chain Harvey Nichols, according to sources.<\/p>\n
The Sports Direct owner could make an announcement on Thursday that it has acquired the upmarket retailer in a pre-pack insolvency process.<\/p>\n
Mr Ashley\u2019s team has been engaged in detailed talks with FTI Consulting, the adviser to Harvey Nichols and its standby administrator, says Sky News<\/em>. It is likely to involve the retention of a large number of the 1,200 staff.<\/p>\n 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.<\/p>\n Next is also interested in Harvey Nichols, but it is understood it would not be prepared to take on all of its stores.<\/p>\n There have been reports in recent weeks that Frasers may rebrand some of the stores as Flannels or House of Fraser. <\/p>\n 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.\u00a0<\/p>\n 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 \u00a350 million to \u00a360m in extra investment.<\/p>\n Acquiring Harvey Nichols would seal Mike Ashley\u2019s reputation as a serial acquirer of distressed businesses at bargain prices.<\/p>\n Last week he said he would be surprised if Harvey Nicols fetched more than \u00a340m.<\/p>\n Daily Business Bulletin<\/strong>:\u00a0Subscribe here for our free morning bulletin of breaking news<\/em><\/p>\n \t <\/div>\n