Next is reportedly in talks to acquire struggling luxury department store Harvey Nichols, with Sky News reporting that the retail giant is "serious" about the plan, though discussions remain in early stages. The potential deal comes after Harvey Nichols' billionaire owner, Sir Dickson Poon, put the chain up for sale following years of financial losses.
Financial Struggles at Harvey Nichols
Harvey Nichols reported a pre-tax loss of £34 million for the year to March 2024, a significant increase from the £20 million loss recorded the previous year. Revenues also declined by 5% during the same period. The chain, founded in 1831, has seen its flagship Knightsbridge store in London account for a disproportionate share of sales, while regional branches in Leeds, Edinburgh, Manchester, Birmingham, Bristol, and Dublin have underperformed.
Luxury retailers have been particularly affected by the abolition of the VAT Retail Export Scheme in 2021 following Brexit, which eliminated tax-free shopping for wealthy international tourists in Britain.
Potential Deal Details
It remains unclear whether a deal would involve the physical stores or only the brand name. Next has previously acquired struggling brands, such as Russell and Bromley, but that £3.8 million deal saved only three stores in Chelsea, Mayfair, and Bluewater, while 33 other locations closed. Sky News also reported that Mike Ashley's Frasers Group had held talks to buy the UK regional stores, but it was not thought to be part of the corporate sale process. Other prospective buyers reportedly include high-net-worth individuals from Asia and the Middle East.
Full List of Current Harvey Nichols Stores
- Knightsbridge, London
- Leeds
- Birmingham
- Edinburgh
- Manchester
- Dublin
- Bristol
Next and Harvey Nichols have both been approached for comment by the Express.
