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It would be easy to make fun of the takeover of Harvey Nichols by the Sports Direct founder, Mike Ashley, this week. And yet, there is also an element of truth in it. Ashley is, without question, a very smart retailer. But he is more Newcastle than Knightsbridge – and it will be very hard to restore Harvey Nichols to its former glory.
It is a mark of how much London’s economy has declined over the last few years that there was so little interest in buying Harvey Nichols. Once Princess Diana’s favourite store, it was at one time one of the most glamorous fashion retailers in the world.
Its owner, the Hong Kong tycoon Sir Dickson Poon, had, however, tired of its recent losses. The Gulf wealth funds, tech billionaires, and luxury conglomerates like LVMH – who once might have been expected to buy the department store – all turned away. In the end, Ashley was the only real bidder. With a Labour government determined to drive wealth out of the country with extra taxes, sadly it seems no one is interested in the London market anymore.
The problem will be working out how to make the business hum again
