Next is reportedly considering the sale of its 51% stake in Reiss, in a deal worth over £500 million.
The retail giant is in talks over an auction of the business, with a raft of unknown buyers already circulating, Sky News reported.
According to reports, Next is said to be working with investment bankers at Raymond James to arrange the sale.
Next originally acquired 25% of the fashion retailer in May 2021 from Warburg Pincus, and later increased its stake to 51% in August last year.
However, if a sale is completed, Warburg Pincus can expect over double its investment, after it acquired Reiss in 2016 worth £260 million.
At the time of its initial investment in Reiss, which has 60 stores across the UK, Next CEO Simon Wolfson said: “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.”