Frasers Group has gained approval to take part in the auction for luxury department stores chain Harvey Nichols, despite reported opposition from some luxury brand suppliers.
Sky News said that the company’s owners had initially not wanted Frasers on the bidder list and had told suppliers it wouldn’t be allowed to take part, but the group seems to have convinced them to change their view.
The report said that “Frasers Group wrote to Harvey Nichols in recent days demanding to be allowed into its sale process. On Tuesday morning, Harvey Nichols wrote to brand owners which supply Harvey Nichols to inform them that it had been ‘obliged to allow Frasers Group to participate in the process alongside the other interested parties’.”
A “senior Harvey Nichols executive” wrote that letting Frasers take part “forms part of ensuring a robust and competitive process as we seek the right partner to support Harvey Nichols’ next phase of growth”.
None of the parties involved is commenting and it remains unclear at present why Frasers’ interest had compelled privately-held Harvey Nichols to change its mind.
Frasers had earlier this year been reportedly interested in buying the chain’s regional UK stores in Birmingham, Manchester, Leeds, Edinburgh and Bristol, but this process appeared to have gone cold.
The struggling Harvey Nichols business has been put up for sale by long-time owner Dickson Poon and it’s been widely reported that Next is interested in buying it. It’s also been suggested that international parties in the US, Middle East and Turkey could also bid.
International potential
Sky News said it has been contacted by a number of brand owners “concerned about the possibility of the department store empire being taken over by [Frasers] group”, which is a stock exchange-listed business but which is controlled by retail tycoon Mike Ashley.
No similar level of opposition has been suggested about Next, although reports have also said the Harvey Nichols board might favour an international buyer due to the expansion potential outside of the UK.
In the memo Sky saw that was sent to suppliers on Tuesday, Harvey Nichols did say it’s been “encouraged by the level of interest in the business, with multiple parties engaged from both the UK and several key international markets. In the meantime, it remains very much business as usual”.
It’s unclear exactly what price the company might sell for. Next is known to be averse to overpaying for its acquisitions, despite its enthusiasm for snapping up distressed firms. Frasers, meanwhile, is famous for seeking acquisitions at bargain prices.
Harvey Nichols saw revenue of a little over £200 million in the last financial year for which it has filed accounts. But it was also loss-making for the fifth consecutive year with its pre-tax loss widening to £34 million.
Copyright © 2026 FashionNetwork.com All rights reserved.
