Harvey Nichols bought by Sports Direct owner

Luxury department store Harvey Nichols has been bought by the owners of Sports Direct, who warn "significant restructuring" will be needed to ensure the 200-year-old business remains sustainable.

Mike Ashley's Frasers Group will take control of the Harvey Nichols stores, including its flagship in Knightsbridge, as well as the international franchise.

The department store was immortalised in BBC sitcom Absolutely Fabulous, but had faced challenges in recent years. The firm had appointed administrators in June.

Frasers Group's chief executive Michael Murray called the store a "British institution with significant potential" but added "clear meaningful change is needed".

"The turnaround will require tough choices and we are prepared to make those decisions, even if that means a smaller business in the near term, to create a stronger and more sustainable Harvey Nichols for the long-term," he said.

Harvey Nichols carries more than 800 premium and luxury brands and has over 1,000 employees. Its other stores are located in Manchester, Birmingham, Bristol, Leeds and Edinburgh.

Frasers Group will also acquire the online business, and stores will continue to operate under their existing licensing.

Earlier this week, Harvey Nichols warned in its latest accounts that it would need to "cease trading" within a year if it failed to secure new investment.