Frasers Group, the owner of Sports Direct, has announced plans to close Harvey Nichols’ Birmingham store in January following its acquisition of the department store chain in August. The closure will result in the loss of at least 60 positions. The company acquired Harvey Nichols after the retailer entered administration, purchasing the business for £43 million and preserving approximately 1,000 of the chain’s 1,200 jobs across six UK locations.
Under the new ownership structure, the Leeds and Bristol Harvey Nichols stores will be rebranded as Flannels outlets. The fate of the Manchester, Edinburgh, and London locations remains uncertain at this stage. Frasers Group indicated previously that it would maintain the Knightsbridge and Edinburgh Harvey Nichols stores while rebranding other UK locations as either House of Fraser or Flannels. Staff at the Birmingham location, which opened 25 years ago, were informed of the closure plans earlier this week.
At the time of administration, Harvey Nichols Group carried approximately £100 million in unsecured debt owed to various creditors, including major brands such as Canada Goose and Victoria Beckham. The company operates international locations in Riyadh, Dubai, Doha, Kuwait, and Hong Kong, with a Dublin store having already been closed by administrators in September. The Oxo Tower restaurant, operated by Harvey Nichols, was sold separately, preserving 130 jobs.
Michael Murray, chief executive of Frasers Group, stated that the company’s objective is to expand its luxury division through organic growth, acquisitions, and strategic partnerships. Frasers Group has pursued an acquisition strategy focused on premium retail brands in recent years, including its 2018 purchase of House of Fraser and ongoing development of the Flannels luxury fashion chain.
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