Frasers Group, owner of Sports Direct and Flannels, has offered to secure the pay of personal shoppers and stylists at Harvey Nichols. This follows Mike Ashley’s retail empire buying the luxury department store chain from administrators FTI for £40m last week.
The company will make "goodwill payments" to a number of personal shoppers and stylists who were owed money when Harvey Nichols collapsed. These payments will be fast-tracked and handed out within 72 hours, bypassing the potentially lengthy administration process.
A spokesperson for Frasers Group stated that while there was no obligation on their part, they wished to reassure these self-employed individuals that they would be paid swiftly and in full. In the future, personal shoppers and stylists working with Harvey Nichols will be remunerated monthly, a change from the previous quarterly payment system.
The acquisition of Harvey Nichols is part of Frasers Group's strategy to expand into luxury fashion. The firm also recently increased its stake in German fashion house Hugo Boss to nearly 48 per cent.