Poundland owner Gordon Brothers joins Harvey Nichols auction

Gordon Brothers, the retail investment firm that owns Poundland and has previously owned Laura Ashley, has submitted an offer to acquire luxury department store Harvey Nichols.

The company lodged its bid ahead of a deadline this week, according to Sky News. Advisers to Harvey Nichols owner Sir Dickson Poon have set a further deadline next week as the 35-year ownership period moves towards a possible sale.

Frasers Group and NEXT are viewed as the leading contenders, while Gordon Brothers and several international parties remain involved. Dubai-based Chalhoub Group and India’s Reliance Retail have also examined potential offers.

Sir Dickson’s family has appointed FTI Consulting to oversee the process, alongside regional advisers tasked with attracting interest from Gulf investors. 

Bidders face a £60 million funding requirement

Prospective buyers must consider more than the acquisition price. Harvey Nichols has told bidders they must commit up to £60 million to support its continuing transformation programme.

The funding would be used for the Edinburgh store refurbishment, as well as international expansion, digital development and management’s wider business plan.

Chief Executive Julia Goddard, who joined Harvey Nichols in June 2024, has overseen investment at its Knightsbridge flagship. Recent work has included a wellness destination on the fourth floor and a redesigned ground floor with jewellery, lifestyle products and flexible spaces for brands.

The flagship investment is understood to have improved performance, but the group has now endured five straight years of losses. Revenue fell 5% to £204.8 million in the year to 31 March 2024, while pre-tax losses widened to £34 million.

Meanwhile, the retailer recently strengthened its senior leadership team with the appointment of Shaun Donnelly to Buying Director for Non Apparel & Menswear. 

Harvey Nichols employs about 1,200 people in the UK and runs seven stores in the UK and Ireland. Its large-format locations include London, Edinburgh, Birmingham, Leeds and Manchester, while its international network reaches markets such as Hong Kong, Dubai and Riyadh.

Frasers and NEXT remain in contention

Frasers, which owns Sports Direct, Flannels and House of Fraser, entered the Harvey Nichols sale process earlier in July despite concerns among some luxury suppliers about its potential ownership.

A Harvey Nichols executive told suppliers in a memo that the retailer had been "obliged" to allow Frasers Group to participate in the process, while the company said Frasers’ admission would help ensure a competitive process.

NEXT has also assessed the business, although it remains unclear whether it would retain the regional store estate or focus on the Harvey Nichols brand and intellectual property. Both retailers faced an initial 28 July offer deadline, with Frasers expected to advance its bid.

Ownership history 

Sir Dickson Poon's Dickson Concepts International bought Harvey Nichols from Burton Group in 1991 for £53 million. The company listed on the London Stock Exchange in 1996 before being taken private again six years later.

Sir Dickson is no longer actively involved in running the group, having stepped down from the Harvey Nichols board and his other European directorships.

In June last year, TheIndustry.fashion took an in-depth look at Harvey Nichols' transformation plans, featuring exclusive commentary on the challenges it faces and expert insights into how it might successfully navigate its transformation.