Next is preparing a potential bid for Harvey Nichols after the luxury department store chain was put up for sale, according to reports.
The retailer is drawing up plans to make an offer for the business, which has been owned by Hong Kong billionaire Sir Dickson Poon for 35 years, Sky News reported.
The talks are understood to be at an early stage, although Next is said to be serious about exploring a deal.
It is not yet clear whether any bid would include Harvey Nichols’ regional stores or whether Next would focus on the brand itself.
The move would mark the latest acquisition push from Next, which has taken stakes in or bought several well-known retail names in recent years, including FatFace, Joules and Made.com.
In January, it bought Russell & Bromley out of administration for £3.8m.
Harvey Nichols, best known for its Knightsbridge flagship, has been under pressure after years of losses and rising debts.
The retailer posted a £34m pre-tax loss in the year to March 2024, widening from a £20m loss the year before, while revenue fell five per cent.
It marked the fifth consecutive year the business had remained in the red, as luxury retailers continue to grapple with weaker tourist spending following the end of VAT-free shopping and changes to non-dom tax rules.
The company, founded in 1831, employs around 1,200 people in the UK and operates stores in Leeds, Edinburgh, Manchester, Birmingham, Bristol and Dublin, alongside international sites in Hong Kong, Dubai, Riyadh, Kuwait and Doha.
Its flagship Knightsbridge store continues to account for a significant share of sales, while its regional estate has faced tougher trading.
Harvey Nichols was recently hit with a winding-up petition from the Rubin family, owners of Pentland Group, over an unpaid debt, which the retailer later said had been settled.
Sky News reported that Frasers Group had previously held talks about buying Harvey Nichols’ UK regional stores, but is not currently thought to be part of the wider sale process.
Other potential suitors are said to include wealthy individuals from Asia and the Middle East.
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