Luxury department store Harvey Nichols has warned its future is in jeopardy without a rescue deal.
Around 1,200 jobs are at risk, as well as the future of its UK store estate, including its flagship Knightsbridge location and branches in Leeds and Edinburgh.
The warning follows newly filed accounts for Harvey Nichols Group, covering the year to March 29, 2025, and prepared on a non-going-concern basis due to uncertainty over its future.
Harvey Nichols warns it could collapse with 1,200 jobs at risk
Mike Ashley’s Frasers Group has emerged as the leading candidate to take over the troubled retailer.
The takeover would be through a pre-pack administration, which could see the business briefly enter administration before being sold, according to Sky News.
Mike Ashley recently described Harvey Nichols as being in a “death spiral”.
Next had also expressed interest in a takeover, but reports suggest that a competing offer is now unlikely to succeed.
The group would acquire Harvey Nichols from long-time owner Sir Dickson Poon.
If completed, the sale would end 35 years of ownership by Sir Dickson’s family, who acquired the retailer in 1991.
FTI Consulting has been advising on the sale process.
The company has faced mounting losses in recent years, with revenue falling five per cent to £204.8 million in the year to March 2024 and pre-tax losses widening to £34 million.
Harvey Nichols has now posted losses for five consecutive years.
Prospective buyers have been told that up to £60 million may be needed to fund a turnaround, though some industry sources believe even more investment may be required.
Mr Ashley said reviving the business would be a “huge challenge” and suggested it could sell for less than £40 million.
Harvey Nichols has been investing in an upgrade of its Knightsbridge store under chief executive Julia Goddard, but a rescue deal is now seen as essential to keeping the business afloat.
UK companies that have closed or entered administration or liquidation in 2026
Several other retailers have entered administration or liquidation, with others being forced into store closures.
Major high street brands LK Bennett, Claire's, and Quiz have been forced to close all their remaining stores after falling into administration.
UK fashion retailer Leading Labels has also closed its remaining 15 stores after falling into liquidation.
Whitbread recently confirmed it will be closing all its UK restaurants in September, including 106 Beefeater sites and 89 Brewers Fayre locations.
The business' Bar + Block, Table Table and Cookhouse + Pub sites will also shut down.
Other retailers forced to close stores this year include names such as River Island, Poundland and BrewDog.
Several UK travel companies have also ceased trading or entered administration in 2026:
- Regen Central Ltd
- Gold Crest Holidays
- Asiara UK Ltd
- Simply Florida Travel Ltd
- Trav Expert Ltd
- Strachan Travel Ltd
- Travel Bespoke Ltd
- Groupia Ltd
- Global Vision International
- Ski Yodl Ltd
- TS Travels Group
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It hasn't all been bad news for the UK high street, with several major brands announcing new store openings for 2026, including Aldi, M&S, and Superdrug.
Meanwhile, brands including Evans and Bodycare have returned to the UK high street this year after previously closing all their stores.
Which business/store closure in 2026 has impacted you the most? Let us know in the comments below.
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