Poundland owner joins suitors for department store chain Harvey Nichols

The owner of Poundland has tabled an offer for Harvey Nichols as the owner of the Knightsbridge-based department store chain nears a decision about its future.

Sky News has learnt that Gordon Brothers, the investment firm which has owned some of Britain's best-known retailers, including Laura Ashley, lodged a bid for Harvey Nichols ahead of a deadline this week.

Sources said on Thursday that a further bid deadline next week had been set by advisers to the group's owner, Sir Dickson Poon, who is plotting a sale after 35 years.

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Frasers Group and Next are regarded as the leading contenders to acquire Harvey Nichols, although Gordon Brothers and a number of overseas parties remain in contention, according to sources close to the process.

International parties said to have been examining offers for Harvey Nichols include Dubai-based Chalhoub Group and India's Reliance Retail.

The auction has been complicated by a disclosure from Harvey Nichols to prospective buyers that they need to commit up to £60m of investment to fund the ongoing transformation of the department store group.

Harvey Nichols has recorded five successive years of losses, although a major investment in its flagship store in London is understood to have produced an improvement in its performance.

Sky News revealed this month that Harvey Nichols had told brand suppliers that it had been "obliged to allow Frasers Group to participate in the process alongside the other interested parties".

One bidder said the reference to an "obligation" could point towards an eventual transaction implemented by way of a pre-pack administration process.

Among the hundreds of brands sold at Harvey Nichols are Armani Beauty, Balmain, Cartier, Juicy Couture, Lancome, Max Mara, Nike, Polo Ralph Lauren and Spanx.

Sir Dickson's family, who bought the chain in 1991, have appointed FTI Consulting to advise on a sale of the business, with regional advisers also appointed to drum up interest among wealthy Gulf bidders.

Popularised by its frequent references in the 1990s BBC sitcom Absolutely Fabulous, Harvey Nichols employs about 1,200 people in the UK and Ireland, and trades from stores in cities including Edinburgh, Leeds and Manchester.

It also operates London's famous OXO Tower Restaurant on the South Bank, while internationally it has stores in Hong Kong, Dubai, Riyadh, Kuwait, and Doha.

Harvey Nichols traces its roots back to 1831, and had a spell as a public company, having floated on the London Stock Exchange in 1996.

It was taken private again a few years later.

In the most recent financial year for which financial results are available, revenue fell 5% to £204.8m in the 12 months to 31 March 2024, while losses before tax rose to £34m.

Harvey Nichols declined to comment, while Gordon Brothers did not respond to a request for comment.

(c) Sky News 2026: Poundland owner joins suitors for department store chain Harvey Nichols