Frasers Group Shuts Harvey Nichols in Dublin, Birmingham, Converts Others to Flannels Stores
Frasers Group is reorganizing the Harvey Nichols portfolio following its purchase of the loss-making retailer in August.
LONDON — Harvey Nichols’ store portfolio across the U.K. and Ireland is set to shrink following Frasers Group’s purchase of the ailing retailer in August.
The Dublin store has already shut, while the Birmingham unit will close its doors on Jan. 3. The Harvey Nichols stores in Bristol and Leeds will be rebranded as Flannels, according to U.K. media reports. Flannels is Frasers’ premium, multibrand retail chain which has a flagship on Oxford Street in London.
The three stores in London, Edinburgh and Manchester will continue to operate under the Harvey Nichols banner, according to the reports. The longer-term fate of the flagship in London’s Knightsbridge is unclear as there are only five years left on the lease for the property, which belongs to the Cadogan Estate.
WWD has contacted Frasers Group for comment.
Frasers purchased Harvey Nichols out of administration for a price of 43.3 million pounds, in a “pre-pack” deal, where the sale of a business is agreed upon prior to the administrator being formally appointed.
Estimated unsecured creditor claims total 270.5 million pounds, with brands including Brunello Cucinelli, Deckers U.K., Joseph, Kering Eyewear, Khaite, Yves Saint Laurent, Max Mara and Victoria Beckham each owed in excess of 300,000 pounds. As reported, administrators could pay 13.2 pence for every pound owed to unsecured creditors.
Following Frasers’ purchase, chief executive officer Michael Murray described Harvey Nichols as “an iconic British institution with significant potential,” but said “meaningful change is needed. The turnaround will require tough choices, and we are prepared to make those decisions, even if that means a smaller business in the near term to create a stronger and more sustainable Harvey Nichols for the long term,” he said.
Murray added that by “integrating Harvey Nichols into our existing luxury ecosystem, we believe Frasers Group can deliver the expertise, infrastructure and commitment needed to give the business the best chance of long-term success.”
Earlier this week, Frasers Group unveiled a new luxury division, which it describes as a portfolio of “distinctive luxury businesses, digital capabilities, and investments with longstanding strategic brand partners at its core.” Harvey Nichols, Flannels and The Webster in the U.S. and Frasers are part of the new division, as are the group’s strategic investments in Mulberry, Burberry, Hugo Boss and Hulcan’s Mile.