Next considers selling its stake in fashion brand
High street retailer, Next plc, could part company with upscale fashion brand, Reiss, in which it owns a controlling stake.
The high street giant is reportedly in talks to sell its stake in Reiss in a £500m deal according to Sky News.
Next and another shareholder, Warburg Pincus, are in second round talks about the sale, Sky said.
It reported that the process is being overseen by investment bankers from the private equity company, Raymond James.
Next took a 25% stake in Reiss in 2021 in a deal worth £433m. The deal also allowed the high street retailer to to take an additional 26% interest at pre agreed terms taking its holdings in Reiss to 51%.
In May 2016, US private equity firm Warburg Pincus acquired a majority stake in Reiss, with the Reiss family retaining a minority holding.
Under the terms of the deal, Reiss retained its management autonomy and creative independence, with its own independent board of directors.
London-based Reiss was founded by David Reiss in 1971, originally as a menswear brand. It now has 160 outlets across the world.