Next UK and Warburg Pincus Plans £500M Reiss Sale

Next UK will soon launch Reiss auction. Image Courtesy: Yui Mok/PA

Next uk and warburg pincus will break a deal for reiss sale

Founded by David Reiss in 1971, Reiss is on the verge of sale for £500M. Next UK and its fellow Reiss shareholder plans an auction to sell Reiss shares. Moreover, the entire auction process is taken over by Raymond James.

According to the resources, a few fundamental parameters has determined Reiss’s cost. Included in them is the expected revenue earned before tax, depreciation, amortization, and interest. Hence, in the light of all decided parameters, Reiss’s sale price falls to £500M.

However, the Next last chess game is unclear. Some predict that the Next UK will hold 51% of its shares. If so, this would be a great initiative by its chief executive Lord Wolfson.

Under its long leadership, Next has always come with a protagonist approach. Its impressive returns have turned it into a giant British clothing brand.

In the past few years, its diversification has reached another level. By acquiring a profit-bound technology, Next UK indulges in buying distressed retail brands. This way, by collaborating with billionaires, it helps ailing retailers.

Back in 2021, the Next clothing brand bought 25% of Reiss’s shares. However, at that moment its total equity was £33m. Lord Wolfson, surely, has the ability to find a diamond among coal. At that time, he described Reiss as “an outstanding brand with enormous potential”.

Hence, after a significant struggle by Next Co UK, Reiss has been able to operate as the most affordable luxury brand in the UK. With its 60 UK shops and 7 US stores, the brand aims for a threefold expansion.

However, at this moment, everyone is speculating about the Reiss sale. Of course, many questions are unfolding about whether the Next UK will hold some of the Reiss shares to carry out its legacy.