Mike Ashley has warned that Harvey Nichols is spiralling into a death spiral and that turning the luxury chain around would be a huge challenge. The Sports Direct founder told the FT that Frasers Group could outbid Next for the store, citing a higher price and a “natural fit.” He said he would not write a huge cheque because the future losses would be too great. Ashley expects the brand to sell for less than £40mn.

Sir Dickson Poon, who has owned the retailer for 35 years, appointed FTI Consulting to find a buyer after a series of losses. Final bids were due on Wednesday, with Poon likely needing to inject cash to sweeten any offer. A Hong Kong tribunal found Poon guilty of insider trading, a fact unknown to Ashley or Next’s chief executive Lord Simon Wolfson.

If Frasers wins the auction, Ashley would keep the flagship Knightsbridge store and rebrand other outlets under House of Fraser or Flannels. The chain has lost £141.2mn pre‑tax in five years, and a sluggish luxury market and the loss of tax‑free shoppingchester London’s attractiveness for high‑spending shoppers.

The outcome has rattled staff and suppliers, as Frasers’ own luxury online brand was placed into administration in 2024. Harvey Nichols remains committed to its transformation and early signs from the refurbished flagship are positive.