Mike Ashley's Frasers Group acquired Harvey Nichols out of insolvency on Wednesday, beating rival retailer Next Plc for control of the storied British department store chain. Bloomberg reported the deal after Harvey Nichols fell on hard times.
The purchase marks a significant move into upmarket retail for Ashley, whose Frasers Group built its name on sports and value retail brands. Harvey Nichols has long been one of Britain's most recognized luxury department store names, with locations in London and several other cities.
Details on the purchase price were not immediately available from either the Financial Times or Bloomberg reports. Both outlets confirmed that Next Plc had been a competing bidder for the chain before Frasers ultimately secured the acquisition.
The deal continues a pattern for Ashley, who has used Frasers Group to snap up distressed retail brands over the years. His portfolio has grown to include a wide range of retail businesses across different market segments. Moving into Harvey Nichols territory represents a clear push toward higher-end consumers.
Harvey Nichols had been under financial strain heading into the insolvency process. The acquisition now puts the brand's future in Ashley's hands, and it remains to be seen how Frasers will operate or reposition the luxury chain going forward.
