Next, the UK high street giant, is in early-stage talks to acquire Harvey Nichols, the iconic luxury department store that employs 1,200 people. Majority shareholder Sir Dickson Poon is preparing to exit the brand after 35 years, with a potential sale to Next that could save the struggling retailer.
Deal Details and Background
Insiders confirmed that the deal is in the development stage, and it remains unclear whether current Harvey Nichols stores, including its flagship location opposite rival Harrods in Knightsbridge, will remain operational. Next has been expanding its portfolio in recent years, adding brands like Fat Face and Joules. Sky News first reported the talks, but a Next spokesman declined to comment on its interest.
Harvey Nichols' executive team recently met with financial advisors and appointed a team to explore strategic options. One insider said talks were already underway with prospective buyers and investors from around the world. Sir Poon has owned the store since 1991, when his Dickson Concepts International group bought it from Burton Group.
Financial Struggles and Recovery Efforts
Harvey Nichols has faced financial difficulties in recent years. In the 12 months to March 31, 2024, revenue fell 5% to £204.8 million, while pre-tax losses rose to £34 million. This marked the fifth consecutive year of losses for the retailer. CEO Julia Goddard, appointed two years ago, oversaw a recovery plan that included scrapping food offerings, closing the Beauty Bazaar at its Liverpool One location, and investing in the Knightsbridge flagship. Digital operations have also been boosted. One source said key performance indicators were "moving in the right direction" following the refurbishment and investment activities.
Future Outlook
Harvey Nichols is expected to change hands in the coming months, according to a second insider. If the deal goes through, Next would add another well-known brand to its portfolio, potentially securing the jobs of 1,200 employees across the UK.
