Next mulling £500m sale of high street fashion brand

Leicester-based Next could be about to offload Reiss, the high street fashion retailer in which it holds a controlling stake, in a hefty multimillion-pound deal, reports suggest.

Sky News understands Lord Wolfson’s company, which owns 51% of Reiss, is considering auctioning off the brand in a deal that would value it at more than £500m.

Investment bank Raymond James and Warburg Pincus – from whom Next acquired 25% of Reiss two years ago before increasing its stake to take majority control – are also believed to be involved.

However, sources close to Next have poured cold water on the idea, telling Sky the retailer could look to put a further stamp on Reiss by buying out what remains of Warburg Pincus’ shareholding in the company.

Next could also retain its 51% stake in Reiss but seek a new equity investor to work alongside it, according to another Sky source.

Next is perhaps better known for its acquisitions than its disposals. In December 2022, the company rescued Market Harborough lifestyle brand Joules from administration in a £34m deal, saving around 1,400 jobs and 100 of Joules’ 124 stores. Prior to that, the Leicester heavyweight saved 500 jobs by taking control of Victoria’s Secret’s UK business in 2020 before snapping up baby clothing and maternity wear brand JoJo Maman Bebe last year. It also acquired Cath Kidston’s brand and IP earlier this year.

The retailer has declined to comment on the Sky News report.