Next buys stake in brand that’s great with Kate
NEXT Plc is taking a 25 per cent stake in the Reiss high street fashion chain in a deal estimated to be worth about £200 million.
Next chief executive Simon Wolfson said it had decided to strike a strategic partnership with the brand because of what he called its huge potential.
Once the move is cleared, his company plans to invest £33 million into Reiss and pay off £10 million of debt in order to help it grow.
Reiss offers a more designer take on high street fashion and has become a favourite of celebrities including the Duchess of Cambridge.
It has reported strong sales growth in recent years despite pressure on high street fashion retailers.
It is the latest in a series of high street acquisitions and deals which included Next becoming a franchise partner for the UK arm of Victoria’s Secret last summer, Marks & Spencers buying Jaeger out of administration and Boohoo doing the same with the Debenhams brand.
Next, of Enderby, said it hopes its infrastructure capabilities can serve as a “launch pad” for Reiss’s growth plans in the UK and overseas.
Reiss will move its online warehouse, distribution and logistics to use Next’s platform to run retail websites and back-end operations.
The move will see Reiss boss Christos Angelides return to Next, where he worked for 28 years until 2014.
Next said Mr Angelides and his creative team will continue to lead Reiss. In the year to February 2020 – before the impact of the pandemic – Reiss reported a 22 per cent jump in turnover, to £227.4 million.
Lord Wolfson said: “Reiss is an outstanding brand with enormous potential and a first-class management team.
“We are excited to see what can be achieved through the combination of Reiss’s exceptional product, marketing and brand building skills with Next’s Total Platform infrastructure.”
Mr Angelides said: “I believe the partnership with Next will be transformational for Reiss’ operational effectiveness.
“Next’s infrastructure will ensure Reiss is not only more efficient as a business but more effective at serving its customers directly through Reiss stores, at reiss.com and through its worldwide partners.”