Staff at the British department store were told on Monday that Malhotra would leave at the end of the year.
After three years as CEO, Malhotra will be replaced by the son of Sir Dickson Poon, the Executive Chairman of Dickson Concepts.
29-year-old Pearson Poon has been appointed as Vice Chairman until a permanent replacement is found, according to The Telegraph.
It is understood that Malhotra decided to leave the business following a disagreement with Sir Dickson over the retailer’s strategy.
She is said to have sought “significant” changes to boost growth at Harvey Nichols, which were opposed by Dickson Concepts with the view that the business is operating well under its current strategy.
Last month, Harvey Nichols reported another loss-making year in the 53 weeks to 2 April 2023. However, overall performance improved with turnover up 111.51%.