Harvey Nichols could cease trading within a year if a rescue deal is not secured, according to a warning from the department store's board. The company filed accounts with Companies House covering the year to 29 March 2025, reporting a loss after tax of £105m after writing off a number of inter-company loans.
Historic retailer faces financial crisis
The shopping giant dates back to 1831 when founder Benjamin Harvey opened his first linen store in London, with the Harvey Nichols & Co. name first being used in 1850. It opened its first store outside of the capital in 1996 with a store in Leeds. Its Manchester shop, on New Cathedral Street in the city centre, first opened in 2003 and spans 95,000 sq ft of space across three floors where it sells menswear, womenswear, cosmetics, and accessories. It also has a food market, and the Second Floor brasserie and bar.
Since 1991, Harvey Nichols has been owned by Dickson Concepts, which is run by Hong Kong billionaire Sir Dickson Poon. Last month, it was reported that the department store had appointed financial advisors to evaluate 'strategic options' for the business.
Board warns of potential collapse
In the filing, the company's board warned that it would need to obtain emergency funding or face a potential collapse within a year should it be unable to secure a buyer. The Daily Star reported this week that the group behind Harvey Nichols had witnessed turnover drop by five per cent to £46.6m in the year to March 2025, while its pre-tax loss expanded to more than £14m.
Next had been one of the companies eyeing up a potential sale of the business, but it has been widely suggested this week that Frasers Group has since emerged as a frontrunner. The company, led by Mike Ashley, owns brands including Sports Direct, House of Fraser, Evans Cycles and Game in the UK.
Potential sale and administration
Last week, Ashley told the Financial Times that he believed Harvey Nichols was stuck in a 'death spiral', and suggested he could pay more than Next for ownership of the brand. Whilst prospective buyers were reported to have been required to pledge up to £60m to support the group's recovery plans as part of any offer, Ashley said he anticipated that Harvey Nichols could potentially be sold for under £40m. Should a sale be made, Harvey Nichols could briefly enter administration before the transaction is completed.
"The group has received a number of bids and is actively pursuing one or more such bids with a view to concluding a transaction within the going concern period," Harvey Nichols's bosses stated in a Companies House filing. "While a range of offers has been received by the group, one or more such offers would require the group to be in formal administration prior to sale. At the date of approval of the financial statements, no offer has been accepted."
The M.E.N has approached Harvey Nichols for more information.
