British multinational clothing, footwear and home products retailer Next recently announced it will acquire a 25 per cent indirect interest in Reiss Limited, a British sh fashion brand and retail store chain owned and run by its founder David Reiss, through the acquisition of shares in the holding company of the Reiss business from existing shareholders.

Upon completion of this deal, which is subject to regulatory clearance, Next will make an equity investment of £33 million and a debt investment of £10 million, financed from Next’s own cash resources, the company said in a press release.

Under the terms of the agreement, Next has an option to acquire an additional 26 per cent interest at pre-agreed terms which, if exercised, would take its holding to 51 per cent. The option falls away after July 2022.

In May 2016, US private equity firm Warburg Pincus acquired a majority stake in Reiss, with the Reiss family retaining a minority holding.

An important aspect of the NEXT investment is that Reiss will retain its management autonomy and creative independence. Reiss will have its own independent Board of Directors and continue to be headquartered in London.

Reiss's websites and Online operations, both in the UK and overseas, will be contracted to Next through its Total Platform. Total Platform will also provide warehousing and distribution services for Reiss's retail, franchise, wholesale and concession businesses, all of which will continue to be operated by Reiss. It is anticipated Reiss will go live on Next’s Total Platform in February 2022.

Fibre2Fashion News Desk (DS)

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