Redundancies hit Harvey Nichols as restructuring begins

An inside source told Drapers that the restructure would involve certain departments being eliminated entirely. Staff were informed today (11 September) Drapers understands. A Frasers Group spokesperson told Drapers: “As with any integration of this scale, some review and rationalisation is inevitable as the new operating model takes shape. “Given the consultation is ongoing, it would not be appropriate to comment on the detail at this stage. “Frasers Group and Harvey Nichols remain focused on building a stronger, more sustainable business for the long-term, while supporting and strengthening our brand partnerships.” The news follows a Companies House filing from 3 September that revealed any suppliers owed payment by Harvey Nichols before its acquisition by Frasers Group were expected to recover less than 15p in the pound. Advertisement Prior to the deal, which saw the ailing department store chain snapped up by the Sports Direct owner for £43.3m in a pre-pack administration, suppliers to Harvey Nichols were owed £270m. At the time of filing, Canada Goose was owed £565,267; Max Mara £520,000; Chloé £516,329; Coach £402,285 and Victoria Beckham £353,349. Victoria Beckham posted a profit for the first time in its history last week. Logistics firm GXO was owed £4.5m and the Royal Borough of Kensington and Chelsea was owed £1.5m. Administrators from FTI Consulting estimated that brands would receive no more than 15% of money owed, while preferential creditors, including HMRC and employees, are set to be repaid in full. The firm said the luxury retailer had “challenging market conditions” since the Covid-19 pandemic, as trading “continued to deteriorate and shareholder funding ceased to be available”. Advertisement In the year to March, the group suffered a net loss of £59m on revenues of £174m, according to management accounts also included in the Companies House filing. Frasers Group acquired Harvey Nichols on 13 August, including its six UK stores, online business, existing inventory and the roles for more than 1,000 employees. Harvey Nichols Dublin store entered liquidation on 14 August. The store ceased trading on 26 August. Have your say or a new account to join the discussion.