Harvey Nichols bought from administration by Mike Ashley’s Frasers

After Frasers Group bought Harvey Nichols, Russ Mould – investment director at AJ Bell – knows turning around the business will be a challenge.

He said: “Frasers may have made its name in the ‘pile ‘em high, sell ‘em cheap’ end of the retail spectrum, but the company’s acquisition of Harvey Nichols is the latest sign it is setting its sights rather higher these days.

“Where the deal doesn’t represent a departure from the company’s longstanding MO in its eye for potential bargains under Mike Ashley, as well as its strategy of targeting brands and businesses when they’re down on their luck.

“The world of department stores has been shaken to its foundations by the emergence of e-commerce and rapidly rising costs over the last decade or more. Harvey Nichols has been no exception.

“Turning the business around while still retaining the integrity of the brand will be the challenge for its new owner. The acquisition adds to Frasers’ burgeoning portfolio of high-end retail chains and luxury brands which includes Flannels, The Webster and House of Fraser alongside stakes in Hugo Boss, Burberry and Mulberry.

“Investors and other stakeholders will hope there is no repeat of Frasers’ brief ownership of online luxury retailer Matches in 2024, when it snapped up the business before placing it in administration just three months later.”