Next and Reiss have announced a long-term, strategic partnership whereby Next will acquire a 25% equity stake in Reiss adding a luxury element to Next’s portfolio worth around £200m.
As part of the agreement, Reiss will transition its online platform, warehouse, distribution and logistics to the Next Total Platform where Reiss can benefit from Next’s extensive infrastructure capabilities and can serve as a launch pad for Reiss’s growth plans, both in the UK, and overseas.
Next believes that, with its infrastructure powering the business, Reiss can focus on its strengths: authentic design and curation, creating effortless and timeless, luxury fashion.
Reiss will retain its management autonomy and creative independence continue to have its own independent Board of Directors and be headquartered in London.
Under the leadership of Christos Angelides and his team, Reiss has been transformed over the last four years into a Modern Fashion House with an uncompromised approach to excellence. The business will continue to be led by Christos and his creative team, designing and curating effortless and enduring style for customers.
In the year to 1 February 2020, Reiss achieved turnover of £227.4m through all its sales channels, an increase of 22% on the prior year. The company currently operates in 14 countries from 79 stores, 104 concessions and via wholesale and franchises.
In its first year, after accounting for integration and acquisition costs, the investment is expected to have minimal impact on Next group profits, but the retailer expects a positive contribution thereafter.
Simon Wolfson, Next Chief Executive comments: “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.”
Christos Angelides, Reiss Chief Executive adds: “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. Whilst we will continue to focus on creating authentic and timeless collections, today’s announcement provides a great opportunity for Reiss to realise the Brand’s global potential as a Modern Fashion House.”
