Frasers Group has promised to pay personal shoppers and stylists at Harvey Nichols in full after buying the luxury department store chain for £40million.
The commitment applies to self-employed workers who were contracted before the business entered administration, with most set to receive their money within the next 72 hours.
Billionaire Mike Ashley's retail empire, which also owns Sports Direct and Flannels, stepped in with a rescue deal after the department store warned it would run out of cash without new investment.
The takeover left suppliers and customers worried about unpaid bills and unfulfilled orders, but a spokesman for Frasers Group sought to reassure affected workers on Thursday.
"We have identified a significant number of self-employed individuals who were owed monies for their services as personal shoppers and stylists under the former ownership of Harvey Nichols," the spokesman said.
"Whilst this would normally be a matter for the administrator with no obligation falling upon Frasers Group, we would like to reassure these individuals that we will ensure they are paid swiftly and in full."
The statement added: "Where possible, Frasers Group does its best to be supportive of individual traders and small businesses."
"In future, personal shoppers and stylists who choose to work with Harvey Nichols will be remunerated on a monthly basis, rather than receiving quarterly payments as was previously the case."
Frasers Group rescue deal and Matchesfashion history
Concerns among suppliers stemmed partly from Frasers Group's previous takeover of online luxury marketplace Matchesfashion. Frasers bought Matchesfashion for £52million in December 2023, only to place it into administration three months later with 273 job losses.
That collapse left designer brands including Burberry and Gucci owed a total of £36million, raising anxieties among luxury suppliers when Ashley targeted Harvey Nichols.
Ashley had said earlier this month that Harvey Nichols was "in a death spiral" before completing the acquisition. High Street fashion chain Next withdrew its interest earlier this summer, while private equity companies were also reportedly involved in buyout talks.
Harvey Nichols website closure and customer refunds
Harvey Nichols has temporarily shut down its website during the transition, displaying a message that reads: "Harvey Nichols is currently unavailable online whilst we complete a period of transition. In the meantime, our stores remain open, and our teams are on hand to assist with anything you may need."
Frasers stated that it cannot directly refund customer orders or gift cards purchased before August 13 because those transactions fall "under the ownership structure preceding this transition".
Customers with outstanding refunds are being directed to administrator FTI Consulting, a business advisory firm managing the corporate insolvency process.
Harvey Nichols decline from 1990s heyday
Founded in 1831, the luxury department store chain, known for its flagship store in Knightsbridge, London, was once a thriving emblem of British fashion.
In its 1990s heyday, fans of Harvey Nichols included Princess Diana and other fashion-forward "Sloane Rangers".
Mary Portas, the store's young creative director at the time, made a deal with the popular BBC comedy series Absolutely Fabulous, where its brash and boozy fashionista characters often mentioned the store and wore its clothes.
Portas transformed the retailer into a trendy destination for fashion-conscious shoppers with eye-catching window displays.
However, the business has struggled in recent years, failing to make a profit for five consecutive years after being hit by a downturn in tourism spending following the Covid pandemic and the removal of the UK's VAT-free shopping scheme.
The company had previously stated that prospective buyers would need to invest as much as £60million to restore the luxury retailer to its former glory.
