Gordon Brothers, the US investment firm that owns Poundland, has entered the race to buy Harvey Nichols, submitting a bid ahead of a deadline this week. The firm’s offer arrives as the auction for Harvey Nichols enters a critical phase, with Sir Dickson Poon’s advisers pushing for a swift resolution to the sale process.
The move pits the company against Frasers Group and Next, both considered leading contenders to acquire the struggling luxury department store chain from its owner, Sir Dickson Poon. Poon has held the retailer for 35 years. Frasers Group and Next are understood to be the leading contenders, although Dubai-based luxury retail group Chalhoub and India’s Reliance Retail are among the international parties that have also examined offers.
Bidding war tightens as deadline looms
Advisers to Poon have reportedly set a new deadline for next week, pushing bidders to finalize offers as the sale process accelerates. While Frasers Group and Next remain the most visible contenders, other potential buyers, including Chalhoub and Reliance Retail, have also explored deals.
Harvey Nichols has recorded five consecutive years of losses. Its most recent accounts show revenue fell 5% to £204.8m in the year to March 2024, while pre-tax losses widened to £34m. Prospective buyers have been told they may need to invest as much as £60m to fund Harvey Nichols’ ongoing transformation programme, although recent investment in its Knightsbridge flagship is understood to have improved the store’s performance.
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The auction has taken an unusual turn after Harvey Nichols told suppliers it was “obliged” to include Frasers Group, controlled by Mike Ashley, in the process. The statement fueled speculation that a sale could potentially be completed through a pre-pack administration.
A turnaround specialist with a mixed record
Gordon Brothers, which specializes in distressed retail assets, acquired Poundland in June 2025 for a nominal sum and pledged up to £80m to support the discount chain’s turnaround. It has also previously owned Laura Ashley and recently acquired Radley’s brand and intellectual property assets out of administration.
Harvey Nichols employs around 1,200 people across the UK and Ireland and operates stores in London, Edinburgh, Leeds and Manchester, alongside several international locations.
For now, the focus remains on whether Poon’s advisers can secure a deal that balances the need for fresh investment with the retailer’s long-term viability. The next few days will likely determine whether Harvey Nichols finds a buyer willing to take on its turnaround.
