Clothing brands are increasingly ‘cautious’ of dealing with Harvey Nichols after its takeover by Mike Ashley’s Frasers Group, as they say they could be left out of pocket due to late payments.
One fashion boss, whose clothes were previously stocked by the iconic department store chain, told The Mail on Sunday that many had been stung by the collapse of website Matches Fashion, which the tycoon took over in 2023.
Matches went under the following year owing £210million to some 541 customers, fashion companies and others.
Among those left out of pocket were Burberry, Gucci, Prada and Swedish name Toteme, which received only pennies on the pound of their debts.
‘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.
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’.
Concerns: Clothing brands are increasingly ‘cautious’ of dealing with Harvey Nichols after its takeover by Mike Ashley’s Frasers Group
It comes as some of Harvey Nichols’ suppliers face hundreds of thousands of pounds of potential losses on their invoices after the store went into administration this month, before being snapped up by Frasers in a £40million deal.
Some of its customers may also struggle to get refunds after the chain closed down its website last week, saying orders placed before August 13 fell under the former owners and can no longer be processed.
Ashley made a small step last week to mend relationships with the fashion industry. He is paying in full the sums owing 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. The total figure for this payout is in six figures.
The billionaire plans to integrate the business into Frasers’ ‘existing luxury ecosystem’, making Harvey Nichols a must-visit shopping and socialising destination for style-conscious women like his interior designer wife Linda, whom he divorced, but with whom he has since reconciled.
There is no comment from Frasers Group, however, as to how Ashley intends to regain the confidence of the suppliers that are also crucial to his ambitions for Harvey Nichols.
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