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Thursday, June 13, 2024

Next eyes up Fat Face as new acquisition

Retail giant Next is on the verge of finalising a major deal to acquire fashion chain, Fat Face according to media reports.

Next – which already has 500 high street stores – would take over the operation of around 180 Fat Face outlets if the acquisition goes ahead.

According to a recent report from Sky News, the agreement for this potential takeover could be reached as early as this week.

This development would mark another strategic move for Next, following its successful acquisition of Joules, Made.com and Cath Kidston (not including its physical stores).

More recently, it increased its share in the fashion chain Reiss from 51% to 72%. These endeavors have contributed to the strengthening of its “Total Platform,” an online service suite catering to third-party brands.

Earlier this year, Next also acquired the floral fashion brand Cath Kidston, although the purchase did not include the brand’s physical stores.

The purchase of Fat Face is particularly significant given the company’s recent history.

In 2020, a group of lenders took over Hampshire-based Fat Face when the retail sector was grappling with the challenges posed by the Covid-19 pandemic.

Most recent FatFace accounts for the year to May 2022 showed it had recovered from the pandemic to revenues of almost £235 million and a profit after tax of £5.2 million.

Fat Face had engaged investment bank Rothschild to explore potential buyers for the business.

Next, Fat Face, and Rothschild have not provided any official statements.

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