Harvey Nichols bought by Sports Direct owner

Luxury department store Harvey Nichols has been bought by the owners of Sports Direct.

Mike Ashley's Frasers Group will take control of the six Harvey Nichols stores, including its flagship in Knightsbridge, as well as the international franchise.

It will also acquire the online business, and stores will continue to operate under their existing licensing.

Harvey Nichols, immortalised in BBC sitcom Absolutely Fabulous, carries more than 800 premium and luxury brands and has over 1,000 employees. Its other stores are located in Manchester, Birmingham, Bristol, Leeds and Edinburgh.

Earlier this week, it warned in its latest accounts that it would need to "cease trading" within a year if it failed to secure new investment.

The luxury store, founded in 1831, had appointed an administrator in June.

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."

Its restaurant in the Oxo Tower, London is being sold off separately and is not included in the deal.

Julia Goddard, Harvey Nichols chief executive said today marked "an important milestone" for the company and "provides a strong platform for the next phase of the business's evolution".

"Over the past year, we have made significant progress in repositioning this iconic business, investing in our flagship store, broadening our customer proposition, and strengthening the brand DNA," she added.

Lindsay Hallam, senior managing director of administrator FTI Consulting, who advised Frasers Group on the sale, said she was "pleased to have secured a buyer, providing continuity for Harvey Nichols and enabling it to move forward under new ownership".

"We are particularly pleased the transaction secures more than 1,000 jobs and provides a strong platform for its next chapter.

"Our focus was to find a solution that protected the underlying value of the business, securing a future for a 200-year-old retailer, and delivering the best possible outcome for stakeholders".

Frasers Group owns several high street retail chains and luxury fashion brands including Sports Direct, Flannels, Jack Wills and House of Fraser.