Frasers Group forces way into Harvey Nichols auction

The retailer, owned by billionaire Mike Ashley, wrote to Harvey Nichols in recent days to demand to be allowed into the sale process, according to Sky News. 

Earlier today, Harvey Nichols wrote to its supplier brands to inform them it had been “obliged to allow Frasers Group to participate in the process alongside the other interested parties”.

In a memo to partners seen by the publication, a Harvey Nichols executive said: “When we last spoke, I committed to transparency and keeping you updated on developments regarding the sale process for Harvey Nichols.

“As of yesterday, the situation has evolved, and we are now obliged to allow Frasers Group to participate in the process alongside the other interested parties.

“This forms part of ensuring a robust and competitive process as we seek the right partner to support Harvey Nichols’ next phase of growth.”

Harvey Nichols stocks some of the world’s most exclusive luxury brands, including Armani Beauty, Balmain, Cartier, Juicy Couture, Lancome, Max Mara, Nike, Polo Ralph Lauren, and had previously sought to reassure partners that Frasers Group would not be part of any sale discussions. 

The memo to partners from Harvey Nichols added: “We continue to be encouraged by the level of interest in the business, with multiple parties engaged from both the UK and several key international markets.

“In the meantime, it remains very much business as usual.

“Our stores and teams continue to operate as normal, and we remain fully focused on delivering for our brand partners, customers and colleagues.”

Fashion giant Next is reportedly also in the running to acquire the department store chain. Any move by Next would add Harvey Nichols to its stable of brands, which include Russell & Bromley, Joules and Cath Kidston among many other famous British names.

The report said sources close to Next claim that it intends to have “a serious look” at the department store, but it was unclear whether the retailer would continue operating Harvey Nichols’ regional stores in the UK, similarly to how its buyouts have played out in the past.