Victoria Beckham owed £350,000 by Harvey Nichols
Victoria Beckham could be about to lose as much as £350,000 from Harvey Nichols after the celeb was named among creditors to the luxury department store who are expected to miss out on most of the £270m they are owed.
The fashion designer and TV personality was owed £353,349 by the department store chain when it fell into administration, Companies House filings have revealed.
Harvey Nichols has since been bought for £43.3m by retail giants Frasers Group but its administrators have said that its creditors can expect to recoup no more than 15 per cent of what they are owed.
The luxury department store owes £270.5m in total to its unsecured creditors, many of which are its high-end suppliers. These include Prada, Dolce and Gabbana and Versace.
The creditors on the hook for the biggest sums include Canada Goose, which is owed £565,267; Max Mara, £520,000; Chloé, £516,329; and Coach, £402,285.
Harvey Nicks was ‘deteriorating’
FTI, who served as the group’s administrators before its sale to Frasers, said that the department store chain had run into significant financial troubles in recent years.
The group “faced challenging market conditions” ahead of its collapse, including revenue hits from the Covid-19 lockdowns, higher competition from e-commerce platforms, and the “structural decline” facing British high streets.
Harvey Nichols also saw a “marked reduction” in visits from wealthy Asian and Middle Eastern tourists after London’s VAT-free shopping regime was scrapped in January 2021, the administrators said.
The group’s trading performance “continued to deteriorate and shareholder funding ceased to be available” even after its owner, Hong-Kong-based billionaire Sir Dickson Poon, appointed a new management team in 2024.
FTI said its administration of the collapsed company cost it £861,516. The consultancy is still owed £786,516 of this, it said.
Victoria Beckham label turns profit
Victoria Beckham’s fashion label was one of Harvey Nichols’ key luxury suppliers. The group’s website describes the celebrity as a “respected designer and undeniable style icon”.
“Today, Beckham’s designs are some of the most desirable and copied on the catwalk. The brand’s signature style is made up of highly structured, sophisticated and feminine pieces that empower the wearer,” it says.
Earlier this week, Victoria Beckham’s brand posted a profit for the first time ever. The label saw revenue jump 15 per cent to £130m in the year to December and returned a £3.4m pre-tax profit.
Frasers Group was founded by billionaire retail tycoon Mike Ashley in 1982. Its acquisition of Harvey Nichols comes as Ashley strives to push his empire up-market, away from its roots in discount sportswear.
Ahead of the deal, Ashley told the Financial Times that Harvey Nichols had fallen into a “death spiral”.
Frasers Group’s chief executive, Michael Murray, said its turnaround of the group “will require tough choices, and we are prepared to make those decisions, even if that means a smaller business in the near term”.