What’s behind the Frasers shopping spree that saw it land Harvey Nics?
Our weekly free round up of key deals and major moves in the Rainmakers world
Hello Rainmakers,
Welcome to your weekly round up of deals from around the country.
Frasers Group has added a little more luxury to its shopping list, acquiring Harvey Nichols out of administration as it looks to reshape the long-established department store.
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Frasers has bought the business and assets of Harvey Nichols from FTI Consulting for an undisclosed sum, including six UK stores, its online operation, stock and more than 1,000 employees.
The deal covers Harvey Nichols sites in London, Manchester, Birmingham, Bristol, Leeds and Edinburgh, as well as its international franchise agreements. Selected assets at the Dublin store are also included, while discussions over the future of the site continue.
The OXO restaurant has been left off the menu, having been sold to another buyer.
Frasers said Harvey Nichols had endured “sustained trading and operational challenges” and that a significant restructuring would be needed to return the business to profit.
That means the luxury retailer could be in for some designer downsizing, with Frasers reviewing its store estate, organisational structure, operating model and cost base.
Michael Murray, chief executive of Frasers Group, said: “Harvey Nichols is an iconic British institution with significant potential, but it is clear meaningful change is needed.
“The turnaround will require tough choices, and we are prepared to make those decisions, even if that means a smaller business in the near term, to create a stronger and more sustainable Harvey Nichols for the long term.
“By integrating Harvey Nichols into our existing luxury ecosystem, we believe Frasers Group can deliver the expertise, infrastructure and commitment needed to give the business the best chance of long-term success.”
The acquisition adds another big-name label to Frasers’ wardrobe, alongside luxury businesses including Flannels, The Webster and HULCAN’s MILE.
Harvey Nichols dates back almost 200 years and stocks more than 800 premium and luxury brands, including Gucci, Moncler, Burberry, Prada and Dior.
The deal ends 35 years of ownership by Hong Kong businessman Sir Dickson Poon and hands Frasers another high-profile turnaround project.
Harvey Nichols chief executive Julia Goddard said: “Today marks an important milestone for Harvey Nichols and provides a strong platform for the next phase of the business’s evolution under the ownership of Frasers Group.
“Over the past year, we have made significant progress in repositioning this iconic business, investing in our flagship store, broadening our customer proposition, and strengthening the brand DNA.”
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Funktion Leisure has joined the party, acquiring Bath-based Groupia and its GoHen and StagWeb brands out of administration.
The deal brings the hen and stag travel specialists into the Chester-based group behind Funktion Events, an ABTA-bonded operator that has been arranging group events, corporate trips and pre-wedding blowouts since 2007.
Groupia entered administration in June, bringing the party to an abrupt end after 24 years in business.
More than 750,000 travellers have booked through its brands since launch, giving Funktion a sizeable customer base to work with as it plots the next stage of growth.
And there is no need to RSVP: both GoHen and StagWeb are already back up and taking bookings.
Jay Broughton, managing director of Funktion Leisure, said: “GoHen and StagWeb have been two of the best-known names in UK group travel since 2002, with more than 750,000 customers between the Groupia brands. Our priority has been straightforward: get both brands running again quickly, look after customers, and build on what made them work.”
The acquisition gives the brands a new home within an established group, with booking operations restored and further investment planned.
Funktion said it will put money into both businesses over the coming months, with more details to follow.
For now, it looks like the stag has been saved, the hens are back in the nest, and the party can carry on.
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A merger between Manchester-based telecoms and broadband supplier, TalkTalk Business, and ARO, a Liverpool-based technology services provider, will create one of the UK’s largest independent connectivity and managed technology services providers.
TalkTalk Business completed its demerger from the wider Talk Talk Group in February this year, to operate as a fully independent managed network service provider.
In April it leased 10,472 sq ft of office space in Building 1 at Exchange Quay in Manchester on a seven-year lease, relocating its 136-strong team from its former Soapworks base in Salford.
With approximately 650 employees, annual revenues of around £180m and a combined customer base of more than 70,000 organisations, the new group will be uniquely positioned to help organisations accelerate their digital ambitions through a single trusted technology partner.
Ruth Kennedy, CEO of TalkTalk Business, said: “This merger represents another important step in our transformation into a leading managed services provider and brings together two highly complementary businesses to create a leading independent technology partner for UK organisations.”
The merger brings together leading expertise in connectivity, cloud, cyber security and managed IT services to create a major new force in the UK technology market.
The companies say combining ARO’s strengths in cloud, cyber security and managed IT services with TalkTalk Business’s established expertise in connectivity, networking and communications creates a broader end-to-end technology proposition for customers across the UK.
For ARO, the merger represents an opportunity to extend its impact as part of a larger organisation with expanded capabilities, greater scale and increased capacity for investment, enabling it to support customers with an even broader range of technology solutions.
For TalkTalk Business, the merger marks another significant milestone in its evolution into a managed technology services provider following its separation from TalkTalk Group.
It builds on the recent acquisition of Planet IT and brings together complementary expertise that further strengthens its ability to support customers with integrated connectivity, cloud, cyber security and managed IT services.
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Newton Property Management has acquired Aberdeenshire-based PMC Property Management, strengthening its presence in the north east to approximately 17,000 properties in the area.
PMC Property Management will continue to trade under its existing brand, supported by Newton’s operational resources.
Co-owner Neale Bisset will join Newton, while his fellow co-owner Annette Hudson is retiring.
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Having now completed the Rainmaker events in the West Midlands, North West and Yorkshire, we have also now announced dates and an opening for entries for the East Midlands event on the 5th of November in Nottingham and the South West event on the 26th of November in Bristol.
Last year the events sold out, so book early to secure your table.
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