Coronavirus: Reiss investor postpones sale of business

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Reiss Warburg Pincus coronavirus covid-19
Reiss' sale process is being run by investment bank Rothschild
// Reiss sale delayed due to the coronavirus outbreak
// The delay to the sale process highlights the impact the coronavirus outbreak has had on retail

Reiss has reportedly said a potential sale of its business has been delayed thanks to the coronavirus outbreak.

Investor Warburg Pincus postponed the upcoming auction of the fashion retailer ahead of closing its own offices and limiting business travel for employees, as Covid-19 continues to affect the retail sector, The Sunday Telegraph reported.

Reiss’ sale process is being run by investment bank Rothschild.


READ MORE: Reiss sales reach £227m thanks to rapid global expansion


The delay to the sale process highlights the impact the coronavirus outbreak has had on retail, with many companies already closing stores to minimise the risk of transmission, while many retailers have put several transactions in the sector on hold.

Earlier this year, Reiss announced a potential sale of its business after being approached by Warburg, thanks to a period of growing sales.

Warburg, which took a majority stake in the fashion retailer back in 2016, appointed Rothschild to conduct a review in January.

In the 52 weeks ending February 1, Reiss’ total sales increased by 21.9 per cent to £227.4 million, compared with £186.5 million in 2018, thanks to new partnerships and vigorous expansion, particularly in the US.

EBITDA increased by 51.6 per cent to £29.3 million, compared with £19.3 million in 2018, while full-year like-for like sales increased by 21.6 per cent.

Reiss operates in 15 countries and trades from 69 standalone stores.

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