British high street giant Next is reportedly considering selling upmarket British brand Reiss.
Next and fellow Reiss shareholder Warburg Pincus are in talks with banks over a deal that could value the label at more than 500 million pounds, Sky News reports, citing City sources.
US investment bank Raymond James is reportedly overseeing the deal, and the auction was in its second round, “with a number of buyers circling”, according to the report.
However, no information about interested parties was provided.
The report added that one source close to Next was doubtful that the company would sell its stake in Reiss.
Meanwhile, a senior retail executive suggested the process could be a means to establish a market price and then acquire Warburg Pincus's remaining interest in the business.
Next took majority control of Reiss in August 2022 when it upped its stake to 51 percent - it had originally bought a 25 percent stake in the business back in March 2021.
As part of the deal, Reiss’ websites and online operations were transitioned to Next through its Next's Total Platform, which provides warehousing and distribution services for retail, franchise, wholesale, and concession businesses.
Next CEO Simon Wolfson became the chair of Reiss following the original stake purchase, succeeding David Reiss, who founded his eponymous label in 1971.