(qlmbusinessnews.com Thurs, 12th Oct, 2023) London, UK —
Next Nears Acquisition of Fat Face, Bolstering High Street Presence.
The British High Street giant Next is reportedly on the cusp of finalizing a deal to purchase its competitor, fashion brand Fat Face. Should this acquisition proceed, it would entail Next, with its extensive network of 500 High Street outlets, taking control of Fat Face's 200 stores. This transaction is anticipated to be ratified within the week, as disclosed by Sky News, the first source to break the news of this imminent deal.
This development is part of Next's strategic drive to expand its High Street portfolio. In recent times, Next has embarked on a series of acquisitions, including the fashion brand Joules. The previous year saw Next acquiring Made.com, a furniture brand, as well as securing a minority stake in the baby goods retailer JoJo Maman Bébé. More recently, Next augmented its ownership stake in the fashion label Reiss from 51% to 72%.
These acquisitions are pivotal to Next's strategy for enhancing its “Total Platform,” a comprehensive suite of online services tailored for third-party brands. This year, Next also added the floral fashion brand Cath Kidston to its portfolio, although it did not acquire the brand's physical stores.
In 2020, during the throes of the Covid pandemic, Fat Face fell under the control of a consortium of lenders. However, the fashion retailer has witnessed a resurgence, as reported in its latest annual results, with a 15% increase in sales and a substantial profit boost.
It was noted last year that Fat Face had enlisted the services of the investment bank Rothschild to seek potential buyers for the business.
Next, Fat Face, and Rothschild have refrained from offering any official statements on the speculated acquisition.
The UK's High Streets have been grappling with the financial strain as consumers rein in spending due to the ongoing cost-of-living crisis. Inflation, which pertains to the rate at which prices surge, exhibited a reduction after its surge in 2022. Nevertheless, inflation rates continue to remain elevated, and the rebound of retail sales remains uncertain.
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