Harvey Nichols has issued a warning that it may not be able to continue operating for another year without new investment. The Knightsbridge-headquartered department store chain is currently the subject of bids from potential buyers.
The retailer's Hong Kong-based owner, Dickson Poon, put the company up for sale in June. Mike Ashley's Frasers Group is reportedly aiming to purchase Harvey Nichols for around £40m.
The company has not generated a profit since the coronavirus pandemic. Accounts published recently show a loss after tax of £105m for the year ending 29 March 2025, following the write-off of inter-company loans. Directors have stated that the company is not a going concern, anticipating it will run out of money within the next year without new funding agreements.
The accounts also indicate that Harvey Nichols has received "a number of bids" and hopes to finalise a deal within the coming year. While FTSE 100 retailer Next had previously shown interest, it has since withdrawn from the process.
Mike Ashley, founder of the Sports Direct retail empire and controlling shareholder in Frasers, has emerged as a frontrunner. Ashley reportedly stated that Harvey Nichols is in a "death spiral" and would present a "huge challenge" to revive. He plans to retain the Knightsbridge and Edinburgh stores, but rebrand other locations as House of Fraser or Flannels under the Frasers Group.