Winston Taylor and Linklaters have advised on Frasers Group’s deal to buy luxury department store chain Harvey Nichols out of administration.
Winston Taylor advised Frasers on the transaction, while Linklaters advised the administrators, FTI Consulting.
Frasers, which is owned by British retail magnate Mike Ashley, bought the loss-making department store out of administration on Thursday (13 August) in a pre-pack deal for an undisclosed fee. The Financial Times reported that Ashley paid about £40m. A pre-pack deal is where a sale is agreed prior to an administrator being appointed.
The deal will see Frasers acquire six stores, including its flagship location in Knightsbridge, London, as well as its online and international businesses. The FT reported that discussions are still ongoing about the future of Harvey Nichols’ Dublin store, while its London restaurant OXO was not included in the deal.
Harvey Nichols was previously owned by Hong Kong businessman Dickson Poon.
The Winston Taylor team on the deal was led by partners Jeremy Drew (IP), Ed Chapman (corporate), Henry Priestley (IP and M&A), Stephen O’Grady (restructuring), Emma Oakley (real estate) and Sian Skelton (regulatory).
The Linklaters team acting for Harvey Nichols Group and administrators FTI Consulting included global restructuring and insolvency co-head Richard Hodgson, real estate partner Siobhan Burton and TMT partner Georgina Kon.
In a statement, Winston Taylor said: “Harvey Nichols has faced sustained trading and operational challenges in recent years, and Frasers is uniquely positioned to provide it with the strategic platform and operational experience required to reshape the business and create a more commercially sustainable future.
“The acquisition strengthens Frasers’ luxury positioning alongside FLANNELS, The Webster and HULCAN’s MILE, while deepening its relationships with many of the sector’s leading global luxury brands, including Gucci, Moncler, Burberry, Prada and Dior.”
Mike Ashley is experienced at rescuing struggling UK retailers. In 2018 his Sports Direct business bought another troubled department store retailer, House of Fraser, out of administration for £90m in a similar pre-pack deal. Sports Direct then changed its name to Frasers Group in 2019.
Ashley also previously owned English Premier League football club Newcastle United before selling it to a Saudi-led consortium in 2021.
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