Frasers Group, the owner of Sports Direct, has bought Harvey Nichols out of administration for an undisclosed sum, preventing the luxury department store chain from running out of money. The deal matters because it puts another established British retailer under Mike Ashley’s group and is likely to bring significant restructuring, including possible store closures and rebranding.

Harvey Nichols has 13 stores and 1,200 employees, with five major UK sites in London, Edinburgh, Birmingham, Leeds and Manchester. Frasers has acquired those stores, while Dublin remains under discussion, overseas franchise agreements will continue, and the Oxo Tower restaurant is being sold separately. Harvey Nichols has not made a profit since the pandemic curtailed spending by international tourists; Frasers previously bought House of Fraser from administration in 2018 and subsequently closed about 40 stores.