Next, Frasers Set to Table Harvey Nichols Takeover Bids – Report

Next (LON: NXT) and Frasers Group (LON: FRAS) are both expected to submit takeover offers for Harvey Nichols on Tuesday, as the department store chain moves closer to picking a new owner.

According to a report from Sky News, British-based suitors have been told to lodge bids on Tuesday ahead of a deadline set by advisers to Harvey Nichols’ owner, Sir Dickson Poon.

Frasers Group, founded by billionaire Mike Ashley, and high street rival Next are both expected to table offers, Sky News understands.

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The process to draw bids from UK-based suitors is running slightly ahead of parallel discussions with international bidders, according to insiders cited by Sky.

Overseas parties examining an offer are said to include Dubai-based Chalhoub Group and India’s Reliance Retail, reported Sky. An outcome from the auction is expected within days.

Sky News revealed last week that bidders had been told they need to commit up to £60m of investment to fund the retailer’s transformation, a sum that may deter Modella Capital, owner of TGJones and Hobbycraft, from pursuing its interest aggressively.

Harvey Nichols has been owned by Sir Dickson for 35 years but has recorded five successive years of losses. In the most recent year for which results are available, revenue fell 5% to £204.8m in the 12 months to 31 March 2024, while pre-tax losses rose to £34m.

Frasers is separately pursuing a deal to acquire Hugo Boss, in which it already holds a large stake, though Sky reported there has been no indication this has affected its interest in Harvey Nichols.

The retailer, which floated on the London Stock Exchange in 1996 before returning to private ownership, employs about 1,200 people across the UK and Ireland.

Harvey Nichols and Next declined to comment, while Frasers had been contacted, reported Sky.