British high street retail giant Next has agreed to buy a 25% stake in smaller upmarket brand Reiss, with an option to add to its holding and secure majority control.
As part of the deal, the FTSE 100 fashion group will pay £33m for the stake, and also provide Reiss with a £10m loan. Next stressed that the British fashion brand will retain its “management autonomy and creative independence”, and will have its own independent board of directors and continue to be headquartered in London.
Reiss’s websites and online operations, both in the UK and overseas, will be contracted to Next via its Total Platform, which will also provide warehousing and distribution services for Reiss’s retail, franchise, wholesale and concession businesses.
Lord Simon Wolfson, Chief Executive of Next, said of the deal: “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.
With Christos Angelides, Reiss Chief Executive, adding: “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.”
