Modella joins race to buy struggling department store chain Harvey Nichols

The owner of retail firm TG Jones has joined the race to buy Harvey Nichols.

Investment group Modella Capital expressed interest in buying the struggling department store chain that has been put up for sale by billionaire owner Dickson Poon.

The firm, which bought WH Smith’s High Street arm and rebranded it TG Jones, is expected to join Next and Mike Ashley’s Frasers Group in the race for Harvey Nichols, according to Sky News. 

Modella, which also owns Hobbycraft, has gained a reputation for shutting shops after buying distressed UK businesses.

Harvey Nichols saw losses widen to £34million in the year to March 2024, the year for which its most recent accounts are available. Sales dropped 5 per cent to £204.8million in the same year. 

The chain’s history can be traced back to 1831, when Benjamin Harvey opened a linen shop in Knightsbridge before later partnering with James Nichols. 

After Harvey’s death in 1850, Nichols and Benjamin’s wife Anne formed Harvey Nichols & Co.

Sir Dickinson bought the business in 1991 for £53million from the Burton Group. He and his team, which included retail guru and ‘Queen of the Shops’ Mary Portas, helped the store garner a reputation for fashion. 

Famous customers included Princess Diana while its glamour was also popularised by the comedy series Absolutely Fabulous.