Daily Newsletter

12 October 2023

Daily Newsletter

12 October 2023

Next ‘weighing’ £100m deal for FatFace

UK retailer Next Plc is reportedly in talks to acquire UK fashion brand Fatface in a deal said to be worth more than £100m ($123.08m).

Hannah Abdulla October 11 2023

Fatface operates out of 180 stores and its owners reportedly appointed Rothschild to advise on strategic options last May. Credit: Shutterstock.

Sky News reports a deal by Next to acquire FatFace is in its final stages and comes just three years after it was taken over by its lenders.

Both Next Plc and FatFace declined to comment when approached by Just Style.

But according to the Sky News report citing city sources, a deal could be announced this week.

FatFace operates out of 180 stores and its owners reportedly appointed independent financial advisory group Rothschild to advise on strategic options last May. In 2020 it had been taken over by lenders including Alcentra and Lloyds Banking Group.

Rothschild declined to comment when approached by Just Style.

FatFace is a B-Corp company that enjoyed strong sales in its last financial year.

An acquisition would mark the latest in Next’s cap which in recent years has acquired Cath Kidston, Made.Co, Joules and JoJo Maman Bebe . It is also the majority shareholder of Reiss after acquiring another stake in the company last month.

At the end of last month Next raised its FY profit guidance from £845m ($1.3m) to £875m, up 0.5% year on year after group sales jumped by 5.4%.

Clothing and footwear ranked among the top 3 sectors by global ecommerce transactions in 2022

Per GlobalData estimates, food and drink, clothing and footwear, and accommodation were the top three sectors by global ecommerce transactions in 2022. Clothing and footwear accounted for 11% of ecommerce transactions in 2022. While consumers may wish to try on clothing and footwear items to ensure a good fit, enhanced technology that offers sizing recommendations and hassle-free returns services has made them more comfortable shopping for these goods online, accounting for the sector’s high share of transactions.

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