Harvey Nichols warns it is on the brink of total collapse unless it secures multimillion-pound bailout

HARVEY Nichols has warned it is on the brink of collapse if it can’t secure a multimillion-pound bailout. The department store chain revealed uncertainty about its future after filing its latest accounts. It comes as Mike Ashley’s Frasers Group has emerged as the frontrunner to acquire the company from its long-standing owner Sir Dickson Poon. A deal could be completed through a pre-pack administration process, which is when a business sale is agreed before an administrator is appointed. Sign up for the Money newsletter Thank you! It could see Harvey Nichols briefly enter administration, according to Sky News. Next is also in the running to buy the company, but reports suggest Frasers is broadly expected to take over. Harvey Nichols has been struggling with mounting losses in recent years, with revenue falling 5% to £204.8million in the year to March 2024. The company has now recorded five consecutive years of losses. Last week, Mr Ashley said Harvey Nichols was in a “death spiral” and turning around the brand would be a “huge challenge”. The luxury department store chain has been owned by Sir Dickson Poon’s family for the last 35 years. Most read in Money Advisers at FTI Consulting have been overseeing the sale process. Buyers have reportedly been told they may need to inject as much as £60million into the company to fund its turnaround. Comment now