- Next acquires FatFace
- Expanding its retail portfolio
- Rapid acquisition of fashion brands
In addition to FatFace, the FTSE-100 clothing retailer has expanded its roster of retail partners to include Made.com, Joules, and Cath Kidston.
Next is poised to solidify its status as the most active buyer of rival high street fashion chains in the UK by acquiring FatFace for over £100 million.
The FTSE-100 fashion giant is finalizing the acquisition of FatFace, previously owned by its lenders for the past three years.
City sources suggest the deal may be announced this week.
The addition of FatFace, a UK-based family-oriented apparel retailer with around 180 stores, is the latest on Next’s post-pandemic shopping list.
It recently expressed its intention to increase its majority stake in Reiss.
During the COVID-19 pandemic, it acquired Made.com, Cath Kidston, and JoJo Maman Bebe.
“Don’t miss out! Grab your free shares of Webull UK today!”
Additionally, Next CEO Lord Wolfson formed partnerships with Gap and Victoria’s Secret.
Next has surpassed the Frasers Group, owned by billionaire tycoon Mike Ashley, as the most active acquirer of smaller retail brands in the UK.
In addition to collaborating with hedge fund Davidson Kempner on the JoJo Maman Bebe transaction, Next considered acquiring Topshop when it faced insolvency. Topshop was ultimately purchased by online fashion retailer ASOS.
Reportedly, in May of last year, the owners of FatFace engaged Rothschild to advise on strategic options.
The deal will be beneficial for them, with lenders like Lloyds Banking Group and Alcentra taking ownership of the company in the summer of 2020.
Established in 1988 by entrepreneurs Tim Slade and Jules Leaver during a mountain vacation, the organization began by selling T-shirts from the back of a camper van.
In 2007, private equity firm Bridgepoint acquired FatFace from Advent International for £360 million.
The company abandoned its flotation attempt in 2014 due to challenging stock market conditions.
As a B Corporation, the organization experienced robust sales growth in its latest fiscal year.
It is currently operational in the United States and Canada, though its presence in those regions is relatively small.
Following an increase in profit projections, Next’s current valuation stands at £8.75 billion.
