British fashion retailer Next is negotiating the sale of its Reiss brand.
British fashion retailer Next is negotiating the sale of its Reiss brand. As part of a multimillion-dollar deal, the fashion giant intends to auction off the retail chain of street fashion stores.
On the balance sheet of Next is 51% of Reiss. Presumably, the deal will be more than 500 million pounds sterling. According to retail real estate market participants, a buyer for the asset has already been found.
Presumably, the deal will involve investment bank Raymond James and Warburg Pincus from which Next acquired a 25% stake in Reiss in 2021. Experts doubt the retailer could sell its entire stake in such a significant transaction.
According to other reports, Next seeks to set a retail price for the asset and intends to retain control of Reiss along with a new investor. Warburg Pincus can expect to double its investment if the deal goes through.
The company struck a deal to acquire a controlling stake in Reiss in 2016, paying £230 million. It next bought 25% of the business from Warburg Pincus in March 2021, bringing its stake to 51% in August 2022.
Reiss is a British fashion brand known for its sophisticated and contemporary clothing and accessories. Founded in 1971 by David Reiss, the company started as a men's tailoring business before expanding into women's fashion in the 2000s. Reiss has become renowned for its high-quality garments, attention to detail, and timeless designs.