Poundland owner Gordon Brothers has submitted a bid for Harvey Nichols as competition intensifies to acquire the loss-making luxury department store chain.
The US investment firm tabled an offer ahead of a deadline this week, joining Frasers Group and Next in the race to buy the retailer from its long-standing owner Sir Dickson Poon.
Frasers 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.
Advisers to Poon, who has owned Harvey Nichols for 35 years, have reportedly set bidders a further deadline next week as they move closer to deciding the department store’s future.
Harvey Nichols buyer faces £60m investment bill
Prospective buyers have been told they may need to invest as much as £60m to fund Harvey Nichols’ ongoing transformation programme.
The retailer has recorded five consecutive years of losses, although recent investment in its Knightsbridge flagship is understood to have improved the store’s performance.
Harvey Nichols’ revenue fell five per cent to £204.8m in the year to 31 March 2024, while its pre-tax losses widened to £34m.
The department store previously told suppliers it had been “obliged” to allow Mike Ashley’s Frasers Group to take part in the auction alongside other bidders, prompting speculation that a sale could potentially be completed through a pre-pack administration.
Gordon Brothers acquired Poundland from Pepco Group for a nominal sum in June 2025 and pledged to provide 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.
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