Luxury department store Harvey Nichols will collapse into administration if a rescue buyer is not found, its directors have warned. The group's latest accounts caution that the retail empire will "cease trading" if it fails to agree a sale and no additional funding is secured.
An auction process is underway, with high street giants Next and Frasers Group reportedly interested. Frasers Group, which owns Sports Direct and Flannels, is said to be leading the race and could initiate a takeover through a pre-pack administration process in the coming days, according to Sky News.
Harvey Nichols's directors stated in a Companies House report that the group has received several bids and is actively pursuing one or more, aiming to conclude a transaction within the going concern period. However, they noted that some offers would require the group to enter formal administration prior to sale, and no offer has been accepted as of the financial statements' approval date.
The company's turnover fell by five per cent to £46.6m in the year to March 2025, and its pre-tax loss widened to more than £14m. Potential buyers have been asked to commit between £50m and £60m to support turnaround efforts.