Next takes stake in high-end fashion brand
Leicester retail giant Next has taken a 25% stake in fashion brand Reiss.
Upon completion of this deal Next will make an equity investment of £33m and a debt investment of £10m,
Next has an option to acquire an additional 26% interest at pre-agreed terms which, if exercised, would take NEXT’s holding to 51%. The option falls away after July 2022.
Reiss was founded in 1971 by David Reiss, originally as a menswear brand. It is now an affordable luxury apparel brand, producing and selling high-quality, classic and modern men’s and women’s clothing and accessories. In May 2016, US private equity firm Warburg Pincus acquired a majority stake in Reiss, with the Reiss family retaining a minority holding.
Christos Angelides was appointed CEO of Reiss in 2017 and will remain in that role. Christos previously worked for Next for 28 years, serving 14 years on the Next board as group product director.
Reiss will have its own independent board of dDirectors and continue to be headquartered in London.
Simon Wolfson, Next chief executive 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.”
Angelides said: “I believe the partnership with Next will be transformational for Reiss’s 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. Whilst we will continue to focus on creating authentic and timeless collections, today’s announcement provides a great opportunity for Reiss to realise the brand’s global potential as a modern fashion house.”