Next acquires 25% stake in Reiss fashion retailer
Next has acquired a 25% stake in the Reiss luxury fashion retailer in a £33 million deal.
As part of the agreement, Reiss will transition its online platform, warehouse, distribution and logistics to Next’s platform to enable it to benefit from Next’s infrastructure capabilities which will also act as a launch pad for Reiss’s growth plans.
In a statement, the two companies said Reiss will continue to be led by chief executive Christos Angelides and will retain its management autonomy and creative independence following the acquisition. It will also continue to have its own board of directors in London.
Next is also providing Reiss with a £10 million loan and has an option to acquire an additional 26% of the company which, if exercised, would take Next’s holding to 51%.
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.”
In the year to 1 February 2020, Reiss’s turnover increased by 22% to £227.4 million. The company currently operates in 14 countries from 79 stores, 104 concessions and via wholesale and franchises.
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. 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.”