The chief executive of Harvey Nichols has quit abruptly following a clash with the luxury retailer’s Chinese owner over her plans for the business.

Manju Malhotra is to step down after just over three years in the role and will be replaced by the son of Sir Dickson Poon, the tycoon who has owned Harvey Nichols since 1991.

Staff at the company were told on Monday that Ms Malhotra will leave at the end of the year, with 29-year-old Pearson Poon, currently an executive director, made vice chairman until permanent replacement is found.

It is understood that Ms Malhotra decided to quit Harvey Nichols after a disagreement with Sir Dickson, who is also chairman, over the retailer’s strategy. 

She is said to have sought significant changes to spur growth at the company which has been loss-making for the past three years. 

However,  Sir Dickson is understood to have opposed her plan, ultimately viewing it as a successful retailer that was operating well under the current strategy. 

Any strategic changes are ultimately decided by  Sir Dickson, who owns a controlling stake.

Sir Dickson, who has been described as operating a tight ship, founded his company after opening a watch and jewellery shop in 1980. 

He was awarded a knighthood for services to business and to charity in 2015 and has donated tens of millions to British universities. 

In 2012 he made a personal donation to King’s College London’s law school, the largest donation from an individual in the college’s history at the time. The school was renamed The Dickson Poon School of Law after the donation.