Next gobbles up FatFace in £115m deal

Leicester retail giant Next has sealed a deal to buy clothing brand FatFace in a £115.2m deal.

The deal was first trailed earlier this week, and was confirmed on Friday (October 13).

The deal follows a period of strong trading for FatFace under the leadership of its CEO Will Crumbie. In the 52 weeks to 27 May 2023, FatFace posted total sales of £282m. Statutory profit before tax in the same period was £19.5m.

Digital channels account for 40% of FatFace sales, with the remainder largely coming from their retail stores. It is anticipated that the company will continue to trade and develop its own retail store portfolio.

Crumbie, who joined FatFace as CFO in 2014 and became CEO in 2021, will continue to lead the business.

Upon completion of the deal, which is expected to take place within “the next few weeks”, Next will hold 97% of the equity and FatFace’s management will hold 3% in the business.

FatFace will retain its own board of directors and continue to be based in Havant, Hampshire.