Harvey Nichols owner Sir Dickson Poon is reportedly exploring a sale of the luxury department store chain after years of losses.

The Hong Kong billionaire, who has owned the business for 35 years, is understood to have appointed advisers to examine options for the retailer, which could include new investment or an outright sale.

FTI Consulting is reported to be advising on the process in the UK, while Derya Akyuz is handling global markets.

Harvey Nichols is understood to be in active discussions with several interested parties over a potential deal.

Reports have suggested a pre-pack administration could be one possible outcome, although this has been firmly denied by the luxury retailer.

The process comes after another difficult year for Harvey Nichols, which has been hit by softer luxury demand, rising costs and the loss of VAT-free shopping for international visitors to the UK.

In the year to March 2024, the business reported a £34m loss, widening from £24.4m a year earlier, while revenue fell five per cent to £204.8m.

The retailer, best known for its Knightsbridge flagship, also operates stores in Manchester, Leeds, Bristol, Birmingham, Edinburgh and Dublin.

Its London flagship is understood to account for a significant share of group sales, making the performance of the capital’s luxury shopping market particularly important to the business.

Harvey Nichols has been attempting to reposition itself under chief executive Julia Goddard, who joined the retailer last year from Alexander McQueen.

The business has been investing in its Knightsbridge store, including the launch of a new wellness destination on the fourth floor last month, as it looks to respond to shifting luxury customer demand.

However, the potential sale process underlines the pressure facing even long-established luxury department stores as international tourist spending remains under strain and competition from rivals including Harrods and Selfridges intensifies.

Sir Dickson Poon acquired Harvey Nichols in 1991 and helped turn the business into one of the UK’s best-known luxury retail names during the 1990s.

Any deal would mark a major change of ownership for the 195-year-old retailer at a time when the wider department store sector continues to grapple with weaker footfall, higher operating costs and changing shopping habits.

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