Next is understood to be close to securing a £100m takeover deal for FatFace.
According to Sky News, the high street giant is understood to be finalising the terms to acquire the fashion retailer, just three years after it was taken over by its lenders.
It said the deal could be announced later this week.
Fatface’s owners are understood to have hired advisors Rothschild on its strategic options in May last year.
Subscribe to Retail Gazette for free
Sign up here to get the latest news straight into your inbox each morning
The retailer trades from more than 200 shops across the UK and Ireland, as well as several sites in the US and Canada.
Earlier this week, Fatface reported its profits had tripled to £17.3m thanks to its continued investment into expanding its store estate and strengthening third-party partnerships.
If Next is successful, the fashion chain will add to Next’s growing list of retail acquisitions and cement the group as one of the most prolific buyers of rival high street fashion chains.
Next announced in September it had become the largest shareholder in Reiss after it bought out private equity firm Warburg Pincus’ interest for £128m.
Click here to sign up to Retail Gazette‘s free daily email newsletter
3 Comments. Leave new
Just wish NEXT would invest in their own stores instead of closing them on the quiet and buying into brands.
You don’t know anything, this is a good thing for the company
No we don’t want this. Leave FatFace alone. Such great quality. Don’t want overpriced rubbish from Next watering it down which is what will happen or removal of the FF brand altogether.