Harvey Nichols used to attract a high-profile clientele, including the late Diana, Princess of Wales, and its place in popular culture was confirmed in its 1990s heyday by the TV sitcom Absolutely Fabulous, which used the store as a symbol for luxury retail. Yet \u201cHarvey Nicks\u201d has struggled to adjust<\/a> to increased competition from other shopping destinations, as well as the rise of online retail.<\/p>\n The company has not made a profit since the coronavirus pandemic<\/a> locked out big-spending foreign tourists, and it reported a loss after tax of \u00a3105m after writing off inter-company loans for the year to 29 March 2025, according to accounts published over the weekend.<\/p>\n The directors warned that the company was not a going concern, because it would run out of money within the next year and that it had no agreements for new funding.<\/p>\n The accounts said that the company had received \u201ca number of bids\u201d to buy it, and that it was hoping to complete a deal within the next year.<\/p>\n FTSE 100 retailer Next had been interested in taking over the business, although it has withdrawn its interest, according to more recent reports.<\/p>\n That has left Ashley, the founder of the Sports Direct retail empire, as one of the frontrunners. Ashley, the controlling shareholder in Frasers, on Friday told the Financial Times that Harvey Nichols was in a \u201cdeath spiral\u201d and that it would be a \u201chuge challenge\u201d to turn it around.<\/p>\n Ashley has bought a series of struggling premium brands<\/a> in recent years after starting out with a single sports shop. He said he would keep the Knightsbridge and Edinburgh stores, but rebrand other stores as House of Fraser or Flannels under his Frasers Group.<\/p>\n
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