Paul Smith boss calls Frasers’ £43.3m Harvey Nichols takeover dubious

Paul Smith executive chairman Ewan Venters criticised Frasers Group’s £43.3m pre‑pack acquisition of Harvey Nichols last month and said the ethics of the deal are dubious. Administrators estimate unsecured creditors will receive less than 15% of the £270.5m owed, leaving Paul Smith with under £15,000 of the nearly £97,000 it is owed.

Frasers acquired Harvey Nichols’ six UK stores, ecommerce operations, inventory and international franchise agreements, with more than 1,000 employees transferring to the group. The retailer warned that the loss‑making luxury business will need significant restructuring, including a review of its store estate, organisational structure and cost base. Frasers chief executive Michael Murray previously described Harvey Nichols as an ‘iconic British institution with significant potential’ but said its turnaround would require tough choices. The deal is part of Frasers’ push into premium and luxury retail, alongside its increased holding in Hugo Boss to almost 48% and a stake in Burberry.

“I personally find this whole thing about pre-pack administrations just dubious in terms of ethics and the way business gets done,” Ewan Venters, executive chairman of Paul Smith said.

“I find it all a bit odd and I don’t think that’s a kind way of doing business,” Ewan Venters, executive chairman of Paul Smith said.

Harvey Nichols collapsed into administration on 13 August owing creditors £270.5m. It was immediately acquired by the Sports Direct and Flannels owner, Frasers Group.

What we know

• £43.3m

• 13 August

• less than 15 per cent

• almost £97,000

• more than 1,000 employees