High street retailer Next has upped its stake in upmarket British brand Reiss to 51 percent.
The increased investment comes after Next snapped up a 25 percent stake in Reiss back in March 2021, valuing the business at around 200 million pounds.
As part of the deal, the Reiss websites and online operations were transitioned to Next through its Next's Total Platform, which provides warehousing and distribution services for Reiss's retail, franchise, wholesale and concession businesses.
At the time, Next said that upon completion of the deal it would make an equity investment of 33 million pounds and a debt investment of 10 million pounds, financed from its own cash resources.
It would then also have the option to acquire an additional 26 percent interest at pre-agreed terms which would take its stake to a majority holding of 51 percent, with the option falling away after July 2022. That option to up its stake was exercised in April 2022, Next told Drapers.
Next takes majority stake in Reiss
In May 2021, The Telegraph reported that Next CEO Simon Wolfson would become the chair of Reiss, replacing David Reiss, who founded the business in 1971.
According to the report, Christos Angelides, who was appointed CEO of Reiss in 2017, would remain at the helm of the company.
Next has previously stressed that Reiss will retain its “management autonomy and creative independence” and will have its own independent board of directors and continue to be headquartered in London.
In its most recent trading update for the 52 weeks to August 29, 2021, sales at Reiss rose 24.6 percent year-over-year as it rebounded from the pandemic, but those figures were still below 2019 levels.
The news of the stake increase comes after it was revealed earlier this month that Next was in talks to buy a 25 percent stake in struggling British lifestyle group Joules.
Also last month, Next upped its full-year profit outlook by 10 million pounds to 860 million pounds following better-than-expected sales in the second quarter of the year.
Full price sales increased 5 percent year-over-year and were 50 million pounds ahead of its previous guidance.