// Next is reportedly looking to sell Reiss in a deal worth £500m
// Raymond James, the investment bank, is overseeing the sale process
Next is in talks about offloading Reiss, the high street fashion retailer in which it holds a controlling stake, in a multimillion-pound deal.
Sky News reports that Next, which owns 51% of Reiss, is considering auctioning off the brand in a deal that would value it at more than £500m, with a number of unnamed buyers already circling.
Investment bank Raymond James and Warburg Pincus – from whom the clothing retailer acquired 25% of Reiss two years ago before increasing its stake to take majority control – are also believed to be involved.
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However, sources close to Next told Sky cast doubt on whether it would ultimately sell its 51% stake.
The process could instead provide an opportunity for Next to establish a market price at which to buy out Warburg Pincus, or allow the retail giant to remain in control alongside a new equity investor, Sky News reported citing City sources.
If a sale is completed, US firm Warburg Pincus can expect to more than double its investment.
The business acquired a majority stake in Reiss in 2016, in a deal that valued the band at £230m.
Next originally acquired 25% of Reiss from Warburg Pincus in March 2021 as part of a long-term, strategic partnership and upped its stake in the fashion retailer to 51% in August last year.
Under the stewardship of chief executive Lord Wolfson, the fashion retailer has diversified by acquiring a range of embattled retailers, going head to head with Mike Ashley’s Frasers Group in recent years.
READ MORE: Next Vs Frasers: How big are their growing retail empires?
It has struck joint ventures with companies including Victoria’s Secret and Gap UK, while snapping up JoJo Maman Bebe and Joules.
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