Harvey Nichols Warns It May Collapse Within 1 Year as Mike Ashley Eyes £40 Million Bid
Updated
Updated · The Guardian · Aug 10
Harvey Nichols Warns It May Collapse Within 1 Year as Mike Ashley Eyes £40 Million Bid
3 articles · Updated · The Guardian · Aug 10
Summary
Harvey Nichols told investors it may not survive the next 12 months without fresh funding, with directors saying the chain is not a going concern and has no agreed new financing.
£105 million in after-tax losses for the year to March 29, 2025 underscored the pressure, after inter-company loan write-offs and years without profit since the pandemic cut off big-spending tourist traffic.
A sale process launched in June has drawn multiple bids, but Next has reportedly dropped out, leaving Frasers chair Mike Ashley among the leading contenders at about £40 million.
Ashley called the business a "death spiral" and said a turnaround would be difficult, though he would keep the Knightsbridge and Edinburgh stores and rebrand other sites under House of Fraser or Flannels.
Founded in 1831 and bought by Dickson Poon for £53 million in 1991, the luxury chain has struggled against rival shopping destinations and the continued shift to online retail.