Arabic version: مجموعة فريزرز تشتري هارفي نيكولز

According to BBC News, Frasers Group, the owner of Sports Direct, has bought luxury department store Harvey Nichols after the retailer appointed administrators in June. The group will take control of the stores, including the flagship Knightsbridge location, as well as the international franchise and online business.

Harvey Nichols has more than 800 premium and luxury brands and employs more than 1,000 people. Its other stores are in Manchester, Birmingham, Bristol, Leeds and Edinburgh. Stores will continue operating under their existing licensing, while the restaurant at London’s Oxo Tower is being sold separately and is not part of the deal.

Frasers Group chief executive Michael Murray called Harvey Nichols a “British institution with significant potential”, but said “clear meaningful change is needed”. He said the turnaround would require “tough choices”, potentially resulting in a smaller business in the near term to create a stronger and more sustainable retailer for the long term.

Harvey Nichols had warned in its latest accounts that it would need to “cease trading” within a year without new investment. The company had faced “sustained trading and operational challenges”, and Frasers said it would review the store portfolio, structure and cost base. A recent auction saw Frasers compete with retail rival Next for control of the business.

Harvey Nichols chief executive Julia Goddard said the sale was “an important milestone” and a platform for the next phase of the company’s evolution. Lindsay Hallam of administrator FTI Consulting said the transaction secured more than 1,000 jobs. Frasers also owns chains and brands including Flannels, Jack Wills and House of Fraser.