Turnover at the Harvey Nichols Group drops 45% as loan secured
Turnover at the Harvey Nichols Group dropped by 45% £121.3m in its last financial year compared to £222 million pre-pandemic, as stores were forced to close and tourist numbers dropped.
The group's losses after tax also increased by 149% to £38.6m in the year to 27 March 2021 while on an EBITDA basis losses widened to £28.1m, compared a £1.1m loss recorded the year before.
Harvey Nichols said that while trading conditions were tough its Hong Kong-based owner Dickson Poon remained "supportive" and had agreed to give the business a loan of £66 million.
The loan consisted of £26 million that were provided by Poon, £5 million derived from an unused overdraft facility and a new £35 million five-year term loan.
Additionally the company benefitted from government provided furlough money of £13 million.
The company operates eight luxury department stores in the UK and six internationally.
CEO Manju Malhotra said that the company was focusing on controlling its costs and cash flow during the period and had invested in IT and its online store to push sales, while it had also recently added new categories such as kidswear.
Additionally it was continuing to invest in technology with a new customer rewards programme due to launch at the end of next month and a transactional app due soon.