Private equity firm eyes £500m Reiss purchase
Private equity firm Elliott Advisors, known for their corporate activism, has emerged as a leading name looking to purchase ‘affordable luxury’ fashion brand chain Reiss.
Elliott Advisors, which owns books retailers Waterstones and Foyle’s, is reportedly looking to purchase the brand from current shareholders Next and Warburg Pincus, Sky News has reported.
One of the firm’s senior executives, Paul Best, played a large role in Warburg Pincus’ acquisition of its stake in the retailer in May 2016.
It is believed that at least three parties have expressed their interest in making a bid for Reiss, which may go to auction in a process overseen by bankers from Raymond James.
Elliott Advisors already has an understanding of the UK retail sector through its ownership of specialist lender Bantry Bay, which has worked with Superdry and ASOS.
It remains a possibility that Next and Warburg Pincus may choose not to sell Reiss, which could fetch a valuation of £500m.
Next purchased a 25% stake in Reiss in 2021, before exercising an option to take majority shareholding of the chain last summer, bringing its total stake to 51%.