The decision comes after Ms Malhotra clashed with the brand’s Chinese owner, Sir Dickson Poon, over growth strategies, the Retail Gazette reports.

Ms Malhotra, who ascended to the CEO role in January 2020, will depart the company at the end of the year. Her dedication to the brand spanned 25 years, with her journey beginning in the finance team and culminating as the CEO.

The disagreement revolved around Ms Malhotra’s plans to revitalise the brand following three consecutive years of financial losses. Despite her efforts, the overarching company, Dickson Concepts, which holds a controlling stake, resisted the new direction, believing the current strategy was adequate.

The luxury department store posted losses of £30 million for the year ending May 2022, a significant downturn from the £2.7m profit recorded in 2020. However, sales figures showcased a promising recovery with a 58% jump to £192m during the same period, although this is still short of pre-pandemic revenues.

Pearson Poon, son of Sir Dickson Poon and currently an executive director, will step into the role of vice chairman until a permanent replacement is appointed. The Poon family has overseen Harvey Nichols since 1991 through Dickson Concepts.