Harvey Nichols suppliers face significant losses after Frasers Group acquisition

Suppliers to the luxury department store Harvey Nichols are expected to recover less than 15p in the pound following the company’s acquisition by Frasers Group through a pre-pack administration. Filings at Companies House reveal that the primary trading entity, Harvey Nichols and Company, owed approximately £270.5 million to unsecured creditors before the deal.

Administrators from FTI Consulting estimate that unsecured brand partners will receive a maximum of 15% of the money owed. Notable creditors include Canada Goose, which is owed £565,267, Max Mara, Chloé, Coach, and Victoria Beckham. Other significant unsecured debts include £4.5 million owed to logistics firm GXO and £1.5 million to the Royal Borough of Kensington and Chelsea. In contrast, preferential creditors, such as employees and HM Revenue & Customs, are expected to be repaid in full.

The acquisition by Frasers Group, completed in August, included the retailer’s six UK stores, online business, and more than 1,000 jobs. The move followed years of losses, including a net loss of £59 million in the year to March. Additionally, the Harvey Nichols store in Dublin has entered liquidation after ceasing trading in late August.