According to reports, Next is thought of as a £ 500 million sale of the high-end clothing retailer Reiss, in which it has the majority of the stock. Warburg Pincus, a shareholder in Reiss and a major retailer, has reportedly recruited bankers at Raymond James to conduct an auction.
The auction is currently in its second round and several prospective purchasers are surrounding, reports suggest. Sources, however, have indicated that Next might be utilising the auction process to determine a market price for Reiss, which it will then use to either keep its 51 per cent holding with a new investor or buy the 49 per cent of shares it does not already own.
Reiss was established more than 50 years ago by retailer David Reiss, and Next made its initial investment in the company in 2021 when it acquired a 25 per cent interest. It has the opportunity to purchase an additional 26 per cent, which it did last year. More recently, it migrated Reiss to its Total Platform, allowing it to provide its clients with better shipping and return services.
At the time of its initial investment in Reiss, Next CEO Simon Wolfson said, “Reiss is an outstanding brand with enormous potential and a first class management team.”
