// Next boss Lord Wolfson will become chairman of Reiss
// Next will invest over £40m in Reiss after purchasing a 20% stake
// Reiss CEO Christos Angelides will remain in his role
Next has reportedly said it will further invest over £40 million in Reiss after purchasing a 20 per cent stake earlier this year.
Next chief executive Lord Simon Wolfson is set to become chairman of Reiss and will replace founder David Reiss, The Telegraph reported.
The appointment comes after Lord Wolfson was given his first external directorship in 30 years, joining the board of Deliveroo in January.
READ MORE:
Next purchased a 25 per cent stake in Reiss earlier this year in a deal worth £33 million.
The stake was part of an acquisition drive, and Next now has the option to acquire a further 26 per cent of the company by July next year.
Reiss is majority-owned by US private equity firm Warburg Pincus and was up for sale before the Covid-19 pandemic struck.
Reiss chief executive Christos Angelides will remain in his role.
Warburg Pincus bought a controlling stake in Reiss in 2016, with the Reiss family retaining a minority holding.
Next said it will invest £43 million as part of the tie-up, including raising £10 million of debt.
As part of the deal with Next, Reiss is taking advantage of its so-called Total Platform, which now controls its back-end operations, including a website, warehouse and logistics.
Warburg Pincus said the tie-up valued Reiss at around £200 million when it was announced, but Next contested that figure and said the partnership was worth less than that.
Next has added hundreds of brands, including Barbour, Boden and Gant to its website over the years.
Click here to sign up to Retail Gazette‘s free daily email newsletter
