Harvey Nichols bought by owner of Sports Direct

Here is a story making headlines in the economy: Harvey Nichols bought by owner of Sports DirectImage source, Getty ImagesByYasmin RufoBusiness reporter Published13 August 2026Luxury department store Harvey Nichols has been bought by the owner of Sports Direct, which warned a "significant restructuring" was needed to ensure the 200-year-old business remains sustainable. Mike Ashley's Frasers Group will take control of the Harvey Nichols stores, including its flagship in Knightsbridge, as well as the international franchise. The department store was immortalised in sitcom Absolutely Fabulous, but had faced challenges in recent years.

The firm had appointed administrators in June. Michael Murray, Frasers' chief executive and Ashley's son-in-law, called the store a "British institution with significant potential" but added "clear 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.

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Harvey Nichols carries more than 800 premium and luxury brands and has over 1,000 employees. Its other stores are located in Manchester, Birmingham, Bristol, Leeds and Edinburgh. Frasers Group will also acquire the online business, and shops will continue to operate under their existing licensing.

Earlier this week, Harvey Nichols warned in its latest accounts that it would need to "cease trading" within a year if it failed to secure new investment. It had faced "sustained trading and operational challenges" recently and Frasers Group said it will need to conduct a review of the store's portfolio, structure and cost base. A recent auction for the store saw Frasers battle retail rival Next to take control of the firm.

Harvey Nichols was bought in 1991 by Hong Kong-based businessman Sir Dickson Poon but he put the group up for sale earlier this year. Image caption, Edina and Patsy from Absolutely Fabulous made frequent retail therapy trips to "Harvey Nicks"Dubbed "Harvey Nicks" by Edina and Patsy from Absolutely Fabulous, the two often found an excuse to nip into the department store for a spot of shopping and a long liquid lunch in the heyday of the 1990s. But Catherine Shuttleworth, retail expert and boss of Savvy Marketing, said: "If you go into a Harvey Nicks store - and I did last week - they look terrible, they look really tired and basically they've suffered from a lack of investment.

"She told Wake Up to Money that department stores "are cash-hungry monsters, they need investing, they need to look good and if you're at the top of the luxury market that's got to be constant". Harvey Nichols chief executive Julia Goddard said the deal marked "an important milestone" for the company and "provides a strong platform for the next phase of the business's evolution".

Financial markets are tracking the development closely as investors assess the likely impact.