Harvey Nichols resumes e-commerce activities

Harvey Nichols has relaunched its e-commerce operations weeks after Frasers Group acquired the luxury department store and rescued it from the clutches of administration.

The website has been resumed following a transaction period in which ownership over the company was transferred to Frasers. The British retail giant acquired the retailer as part of a pre-pack administration deal on August 13, after which online operations came to a halt while stores remained open.

Frasers had snapped up Harvey Nichols from administrators at FTI Consulting, taking control of its online business, inventory, six UK stores and international franchise agreements, with more than 1,000 jobs retained. The company’s Dublin store was left out of the deal and is ultimately set to close on September 13.

A new report filed with the UK’s Companies House earlier this month revealed that Harvey Nichols owed 270.5 million pounds to unsecured creditors at the time of its administration, with Canada Goose, Zimmermann, Max Mara and Chloe among the brands most significantly impacted. The report further confirmed that Frasers had acquired Harvey Nichols’ assets for 43.25 million pounds.

FTI said the group had experienced significant trading difficulties in recent years, with the removal of VAT refunds for international tourists being a defining factor. Trading continued to deteriorate despite a new management team and transformation plan, while additional shareholder funding was no longer available, leading to a formal sale process.