Next and Reiss have agreed a long-term, strategic partnership, in a deal which sees Next acquire a 25 per cent equity stake in Reiss.
The move, designed to generate strong future growth for both retailers, has been valued at around £200 million.
Upon completion of this deal, Next will make an equity investment of £33 million and a debt investment of £10 million, financed from its own cash resources. It will then have the option to buy another 26 per cent stake, which would take Next’s holding to a majority 51 per cent.
In the year to 1 February 2020, Reiss reported turnover of £227.4 million, an increase of 22 per cent on the prior year.
As part of the agreement, Reiss’ websites and online operations will be contracted to Next’s Total Platform. In a press release statement, the company said “the intention is that Next’s infrastructure – its online systems, warehousing, distribution assets and sourcing base – can serve as a launch pad for Reiss’s growth plans, both in the UK and overseas”. Reiss currently operates in 14 countries from 79 stores and 104 concessions.
Reiss will continue under the leadership of Christos Angelides (CEO since 2017) and his team, retaining its own independent board of directors and London headquarters.
Simon Wolfson, Next’s chief executive, said: “Reiss is an outstanding brand with enormous potential and a first class management team. We are excited to see what can be achieved through the combination of Reiss’s exceptional product, marketing and brand building skills with Next’s Total Platform infrastructure.”
Christos Angelides, CEO of Reiss, said: “I believe the partnership with Next will be transformational for Reiss’ operational effectiveness. Next’s infrastructure will ensure Reiss is not only more efficient as a business but more effective at serving its customers directly through Reiss stores, at reiss.com and through its worldwide partners. Whilst we will continue to focus on creating authentic and timeless collections, today’s announcement provides a great opportunity for Reiss to realise the Brand’s global potential as a Modern Fashion House.”
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