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Harvey Nichols is reportedly up for sale after 35 years under the ownership of Hong Kong billionaire Sir Dickson Poon.
Sky News reported that the London-headquartered luxury department store group has appointed financial advisers, including FTI Consulting, to evaluate strategic options for the loss-making business.
Options under review are said to include bringing in investment partners, as well as an outright sale. Talks are already underway with prospective buyers and investors from around the world, according to sources cited in the report.
Prospective buyers are likely to include wealthy individuals from Asia and the Middle East, according to Sky News, with Harvey Nichols expected to change hands in the coming months.
Five consecutive years of losses
In its most recent financial accounts, Harvey Nichols posted revenue of £204.8 million in the 12 months to 31 March 2024, a 5% decline year-on-year. Pre-tax losses rose to £34 million, marking a fifth consecutive year of losses.
The business employs about 1,200 people in the UK, operating seven stores across the UK and Ireland, including five large-format locations in London, Edinburgh, Birmingham, Leeds and Manchester, alongside two smaller-format stores in Bristol and Dublin. Internationally, it has six large-format stores situated in Riyadh, Doha, Dubai, Hong Kong (two stores) and Kuwait.
Management turnaround efforts
Harvey Nichols’ London flagship, based in Knightsbridge, has been undergoing a multimillion-pound refurbishment under the oversight of CEO Julia Goddard, who was appointed two years ago.
This includes the recent unveiling of a new wellness destination, which brings together fitness, beauty treatments, nutrition and athleisure retail in a single space. Located on the fourth floor, the new space features a Pilates studio, overlooking the rooftops of Knightsbridge.
At the time of opening, in May, Lucy McPhail, Beauty Director at Harvey Nichols, said: “The launch of the new fourth floor marks an important step in the continued evolution of our Knightsbridge flagship.”
Goddard has also led investment into the retailer’s digital operations, with internal key performance indicators said to be “moving in the right direction” following the initiatives, according to Sky News.
Meanwhile, the retailer recently strengthened its senior leadership team with the appointment of Shaun Donnelly to Buying Director for Non Apparel & Menswear.
Ownership history
Sir Dickson’s Dickson Concepts International acquired Harvey Nichols from Burton Group in 1991 in a £53 million deal. The company floated on the London Stock Exchange in 1996 but was taken private again by Sir Dickson just six years later.
The business traces its roots to 1831, when Anne Harvey went into partnership with Ben Nichols.
Sir Dickson is no longer actively involved in running the group, having stepped down from the Harvey Nichols board and his other European directorships.
In June last year, TheIndustry.fashion took an in-depth look at Harvey Nichols’ transformation plans, featuring exclusive commentary on the challenges it faces and expert insights into how it might successfully navigate its transformation.