Fashion giant Next is considering the sale of its 51% stake in Reiss in a deal that would value the fashion brand at more than £500m, according to Sky News.
Next originally acquired 25% of Reiss from Warburg Pincus in March 2021 and upped its stake in the fashion retailer to 51% in August last year.
Next and Warburg Pincus are reportedly working with investment bank Raymond James regarding an auction of the company.
It is understood the auction has reached its second round “with a number of buyers circling”, according to City sources.
The sources also told Sky News that the £500m valuation was based on EBITDA for the current financial year.
The identity of the potential buyers is unknown and a senior retail executive said Next “may be using the process to establish a market price and then acquire Warburg Pincus’ remaining interest”.
Sky also reported that a person close to Next “cast doubt on whether it would ultimately sell its 51% stake”.
Next, Warburg Pincus and Raymond James did not provide a comment.
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