Harvey Nichols, the luxury department store chain founded in Knightsbridge, has warned it will run out of money within a year without new investment, as several potential buyers weigh rescue bids. Its Hong Kong-based owner, Dickson Poon, put the company up for sale in June, with Mike Ashley's Frasers Group emerging as the frontrunner to acquire it for around £40m. The retailer has struggled to recover from the pandemic, which cut off its high-spending foreign tourist customer base, and faces mounting competition from rival shopping destinations and online retail.

Accounts published over the weekend showed a loss after tax of £105m for the year to 29 March 2025, following the writing-off of inter-company loans, with directors stating the company is not a going concern. FTSE 100 retailer Next had reportedly considered a takeover but has since withdrawn its interest, leaving Ashley as a leading bidder; he described Harvey Nichols as being in a "death spiral" and said turning it around would be a "huge challenge". Ashley has indicated he would retain the Knightsbridge and Edinburgh stores while potentially rebranding others under his Frasers Group's House of Fraser or Flannels banners. Harvey Nichols, founded in 1831 and bought by Poon in 1991, now operates stores across the UK, Ireland and the Middle East, and is led by chief executive Julia Goddard.