(Image: Supplied)
The owner of the York Designer Outlet has bought Harvey Nichols after the struggling department store chain fell into administration.
Mike Ashley’s Frasers Group, which announced in April it bought the York Designer Outlet from Aviva Investors, said it has now bought the "iconic" Harvey Nichols.
Frasers Group plc is the retail and property conglomerate behind Sports Direct, Evans Cycles and the House of Fraser. It was founded by Mike Ashley in 1982.
Bosses at Frasers said they will now oversee a turnaround at the historic chain, which could see it become a "smaller business" in the short term.
It comes after an auction process for Harvey Nichols which saw Frasers battle retail rival Next to take control of the brand.
Earlier this week, Harvey Nichols warned in its latest accounts that it would need to "cease trading" within a year if it failed to secure new investment.
The deal includes the brand’s estate of six stores in Knightsbridge, London, Manchester, Birmingham, Bristol, Leeds, and Edinburgh.
Frasers Group’s chief executive Michael Murray said: "Harvey Nichols is an iconic British institution with significant potential, but it is clear meaningful change is needed.
“The turnaround will require tough choices and we are prepared to make those decisions, even if that means a smaller business in the near term, to create a stronger and more sustainable Harvey Nichols for the long-term.”
According to this year's Sunday Times Rich List, Ashley was the 48th richest person in the UK with an estimated net worth of £3.44 billion billion.
The 61-year-old retail entrepreneur owned Newcastle United Football Club between 2007 and 2021.