Beauty and fashion retailer Next is continuing its mop up of the British retail market by acquiring a 25% in luxury fashion house Reiss.
Under the terms of the agreement, which set back Next £33m and a debt investment of £10m, Next could acquire an additional 26% of the beauty and fashion group, taking its total holding up to 51%.
Simon Wolfson, Next’s CEO, has until July 2022 to act on this term.
Reiss’ website and online operation, in the UK and overseas, will be contracted to Next through its Total Platform, which will also provide warehousing and distribution services for its retail, franchise, wholesale and concession businesses.
This is expected to go live in February 2022.
“Reiss is an outstanding brand with enormous potential and a first class management team,” said Wolfson.
“We are excited to see what can be achieved through the combination of Reiss’ exceptional product, marketing and brand building skills with Next’s Total Platform infrastructure.”
Reiss Chief Executive, Cristos Angelides, added: “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 that brand’s global potential as a modern fashion house.”
In 2020, Next bought out Victoria’s Secret’s UK business from L Brands in a business-saving deal, after a takeover with Sycamore was terminated.
The 157-year-old retailer was also the frontrunner to take over Arcadia’s Topshop, but chose to back out of the race, letting online retailer Asos have the lion’s share of Arcadia’s collapsed portfolio.