Mike Ashley just bought a 195-year-old brand for less than a Knightsbridge flat

Frasers Group picked up Harvey Nichols out of administration on Wednesday for a price reported around £40 million, ending Dickson Poon's 35-year ownership, according to Reuters. The deal includes the Knightsbridge flagship, stores in Edinburgh and Leeds, the online business and more than 1,000 staff, though the OXO Tower restaurant was carved out and sold separately. Ashley told the Financial Times before the deal closed that Harvey Nichols was in a death spiral and that fixing it would be a huge challenge. Luxury suppliers have already pushed back at the idea of a discount retailer's owner running a premium department store, the Telegraph reported. Frasers says a significant restructuring of stores, headcount and cost base is coming. The real question is whether Ashley's playbook, built on clearance rails and volume, can survive contact with a brand that sells on scarcity.