British clothing retailer Next is preparing a possible takeover approach for luxury department store chain Harvey Nichols, Sky News reported.
The publication reported that Next “is drawing up plans to make an offer for the luxury department store chain”.
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Sky News had previously reported that Sir Dickson Poon, who acquired Harvey Nichols in 1991, had brought in FTI Consulting to advise on a potential sale of the business.
According to the latest report, any move by Next remains “at a relatively early stage”, although sources told Sky the company plans to take “a serious look” at the department store operator.
Harvey Nichols’ flagship store in Knightsbridge, London, is currently undergoing a significant refurbishment.
Established in 1831, the chain sells luxury goods across categories such as cosmetics, fashion, food and wine.
The business employs around 1,200 people in the UK and operates stores in Birmingham, Bristol, Dublin, Edinburgh, Leeds, London and Manchester.
Outside the UK and Ireland, it has a presence in Hong Kong, Dubai, Riyadh, Kuwait and Doha.
Sky News said it remains uncertain whether Next would seek to retain Harvey Nichols’ full store estate or, “consistent with other acquisitions”, whether “its priority would be to utilise the brand and other intellectual property assets”.
The report also said Frasers Group had previously held talks about acquiring Harvey Nichols’ regional stores, but is not currently believed to be involved in the wider sale process.
Other parties that could show interest in Harvey Nichols are expected to include high-net-worth buyers from Asia and the Middle East.
Next has pursued a series of acquisitions in recent years, alongside securing UK licences for brands, including Gap and Victoria’s Secret.
Its latest full acquisition was Russell & Bromley. Earlier deals included taking control of FatFace, Joules, Cath Kidston and Reiss.
