Harvey Nichols warns of collapse without rescue deal as Frasers Group leads takeover bid

Harvey Nichols, the iconic British luxury department store, has warned it could cease trading within a year if it does not secure a sale or additional funding, with billionaire Mike Ashley's Frasers Group emerging as the frontrunner to acquire the business. The retailer's directors stated in newly filed accounts that the company would become a non-going concern without a successful transaction or new investment.

The warning came in financial statements for the 52 weeks to March 29, 2025, which were approved on July 30, 2026 and prepared on a non-going concern basis. Harvey Nichols reported a pretax loss of £178 million for the period, largely driven by accounting writedowns, while sales fell to £69.4 million from £78.1 million the previous year. The company has now posted losses for five consecutive years, citing pressures from the cost of living crisis, weak consumer demand, and the abolition of VAT-free shopping for overseas tourists.

Sir Dickson Poon, the Hong Kong-based owner who has held the retailer for 35 years, put the business up for sale in June. Advisers at FTI Consulting are overseeing the process, which has attracted interest from several parties. However, the...