The owner of Sports Direct has bought Harvey Nichols out of administration after the upmarket department store chain warned it could run out of money if it did not find new funding.

Mike Ashley’s Frasers Group said on Thursday it had bought the chain, which is headquartered at its store in Knightsbridge, for an undisclosed sum on the day it was put into administration. Harvey Nichols has 13 stores and 1,200 employees.