Manju Malhotra rose through the ranks of the retail store after joining the business 25 years ago. Credit: Jeff Pugh
CEO Harvey Nichols abruptly quit after a conflict with a Chinese luxury retailer owner over her plans for the business.
Manju Malhotra is due to step down after just over three years on the job in this position and will be succeeded by son Sir Dixon Poon, the mogul who has owned Harvey Nichols since 1991.
Company employees were told on Monday that Ms. Malhotra would be leaving at the end of the year, along with 29-year-old Pearson Poon. currently Chief Executive appointed Vice Chairman until a permanent replacement can be found.
It is understood that Ms. Malhotra decided to leave Harvey Nichols following a disagreement with Sir Dixon, who is also Chairman of the Board, over retailer strategy.
She is said to have pushed for significant changes to spur growth for a company that has been losing money for the past three years.
However, Sir Dixon famously opposed her plan, eventually seeing him as a successful retailer who performs well under the current strategy.
Any strategic change is ultimately accepted by Sir Dixon, who owns the majority share.
Sir Dixon, who is said to have run a difficult business, founded his company after opening a watch shop and jewelry in 1980.
In 2015, he was awarded a knighthood for services to business and philanthropy. and donated tens of millions to British universities.
In 2012, he made a personal donation to King's College London Law School, at the time the largest single donation by an individual in the college's history. After the donation, the school was renamed Dixon Poon Law School.
Sir Dixon said that outgoing boss Manju Malhotra was “promoting the business at an unprecedented time”. Credit: TED ALJIBE/AFP via Getty Images
The Hong Kong tycoon, who was married to Hollywood actress Michelle Yeoh between 1988 and 1991, grew his business through franchising and licensing deals. before being floated on the stock market in 1986.
Sir Dixon also co-founded a film company, which in 1984 signed Ms. Yeoh, the former Miss Malaysia, to appear in television commercials with Jackie Chan.< /p>
Harvey Nichols has struggled to return to profits since the pandemic and the latest reports available show a loss of £30m in the year to May 2022, compared to a profit of £2.7m before Covid hit.
Revenues for this period were £192 million compared to £121 million the previous year. However, this remained below the £222m recorded in the year until March 2020, just before retailers were forced to close stores due to the pandemic.
Sir Dixon was forced to pour tens of millions into the retailer during the pandemic as he battled Covid restrictions.
Ms Malhotra became chief executive in January 2020, weeks before how the pandemic broke out. . She previously served as co-chief operating officer alongside Daniela Rinaldi.
She said: “I had the most wonderful 25 years at Harvey Nichols, from being a member of the finance team to being the CEO.” through unprecedented times and laid a solid foundation that we will continue to build into the future.”
Speaking to The Telegraph less than four weeks ago, Ms Malhotra said Harvey Nichols was not immune to recent spending the pressure of life, as wealthy buyers are equally sensitive to rising prices.
She said that means she needs to carefully balance how much cost she can pass on to clients.
Ms Malhotra said: “There is a cap on how much people will pay for a glass of champagne.”
However, she suggested that the company is moving towards profitability and will consider opening more stores outside the UK.
In addition to its flagship store in Knightsbridge, London, Harvey Nichols also has stores in Riyadh, Dubai, Hong Kong and Kuwait.
She said, “It may well be the right opportunity. We always pay attention to international potential.”
Tourism falling behind
Ms Malhotra also warned that foreign tourists are “getting used” to buying designer goods in Paris and Milan rather than London. after the UK stopped offering VAT-free shopping to foreign visitors.
Ms Malhotra said: “Tourists are spending less time and money in the UK.” She urged ministers to review policies ahead of the election, warning that the industry risks losing “another summer” to tourism.
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