In this week’s Luxury Briefing, I check in on what it would really take to turn U.K. luxury retailer Harvey Nichols around after the aggressive buyout process from Mike Ashley’s Frasers. Also, Tapestry earnings, executive moves at Exemplar Luxury Group and Centric Brands, and news to know. For tips or comments, email me at zofia@glossy.co.Frasers Group has acquired Harvey Nichols, one of Britain’s best-known luxury department stores, for around $54 million (£40 million), according to the Financial Times. But the purchase price may prove to be the cheap part.
The deal, completed Thursday through a pre-pack administration, where a sale is agreed before a company formally enters administration, includes Harvey Nichols’ six U.K. stores, e-commerce business, inventory, more than 1,000 employees and international franchise agreements. CEO Michael Murray said in a statement that the turnaround would require “tough choices,” even if that means a smaller business in the near term.
Retail consultant Jonathan De Mello, founder and CEO of JDM Retail, estimates that the approximately $81 million (£60 million) of investment previously discussed for Harvey Nichols would only carry the business for around two years.
