Clothing brands are increasingly wary of dealing with Harvey Nichols after its takeover by Mike Ashley's Frasers Group, amid fears they could be left out of pocket by late payments, The Mail on Sunday has reported.
One fashion boss whose clothes were previously stocked by the department store chain said many brands had been stung by the collapse of Matches Fashion, the online retailer Ashley's group took over in 2023.
"Frasers screwed so many brands when it abruptly closed Matches. So, I think any brand would be cautious with anyone associated with that group, at the very least requiring stricter payment terms," the clothing boss said.
Matches went under the following year owing £210million to some 541 customers, fashion companies and others. Burberry, Gucci, Prada and the Swedish label Toteme were among those left out of pocket, receiving only pennies on the pound of their debts.
Harvey Nichols, founded in 1831, is a British luxury department store chain best known for its flagship on Knightsbridge in London. Frasers Group, the retail empire built by Ashley, also owns Sports Direct, House of Fraser and Flannels and holds stakes in several other retailers.
Late payment fears
Adding to the suspicion is data from late payments tracker PaymentCheck, which recorded that a "substantial" 34 per cent of payments from Frasers were classified as late, creating "considerable unpredictability and cash flow risk for suppliers".
Administration and £40million deal
Some Harvey Nichols suppliers face potential losses running into hundreds of thousands of pounds on their invoices after the store went into administration this month, before being bought by Frasers in a £40million deal.
Some customers may also struggle to get refunds after the chain closed its website last week. Orders placed before 13 August fell under the former owners and can no longer be processed.
Stylists paid in full
Ashley made a small step last week to mend relations with the fashion industry, paying in full the sums owed to self-employed personal shoppers and stylists who had not been paid for their services by Harvey Nichols.
A few individuals were owed £20,000, and the total payout runs into six figures.
Plans for Harvey Nichols
Ashley plans to integrate Harvey Nichols into Frasers' "existing luxury ecosystem", making it a must-visit shopping and socialising destination for style-conscious women such as his interior designer wife, Linda, whom he divorced but has since reconciled with.
Frasers Group has not commented on how Ashley intends to regain the confidence of the suppliers who are also crucial to his ambitions for Harvey Nichols.
