Next ‘close to finalising’ £100m buyout of Fat Face

Next is reportedly in the final stages of acquiring British clothing and accessories retailer Fat Face.

Sources at Sky News told the publication that the deal, worth more than £100 million, could be announced as early as this week.

The move to buy Fat Face, which currently has around 180 stores across the UK and Ireland, follows a growing list of recent company buyouts by the clothing brand.

Next acquired British retailer Cath Kidston for around £8.5 million earlier this year after it fell into administration for the second time in two years.

In late 2022, Next acquired fashion brand Joules and the IP of online homeware retailer after their respective collapses.

In June, reports suggested that Next could be planning to sell Reiss at a valuation of more than £500 million.

However, last month Next increased its stake in the company to 72 per cent as part of a £178 million deal.

Next took a 25 per cent stake in Reiss from private equity firm Warburg Pincus in 2021 before choosing to increase it to 51 per cent and become the fashion brand’s majority stakeholder last year under pre-agreed terms.

In August, Next announced a sales increase in the second quarter of almost seven per cent compared to the same period of 2022.

As a result, Next upped its full year pre-tax profit guidance by £10 million to £845 million.

In the 13 weeks to the end of July, online sales rose by ten per cent compared to last year, while in-store sales increased by around two per cent.

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