A HIGH street fashion chain with 180 stores across the UK has been sold to Next.
FatFace, the leading British lifestyle retailer, has been acquired by Next for the value of £115.2million.
PANext has bought FatFace[/caption]
It comes after FatFace’s owners were reported to have appointed Rothschild to advise on strategic options in May last year.
The company which operates online and out of 180 stores across the UK enjoyed strong sales growth during its last financial year.
FatFace stores will continue to operate as a separate entity but shoppers can still buy the brand’s clothing on the Next website.
FatFace was founded by Tim Slade in 1988 selling T-shirts at the French ski resort Méribel and opened its first retail store in London in 1993.
In 2007, FatFace was acquired, for £360 million, by private equity group Bridgepoint Capital.
But in 2020, Fat Face’s lenders, Lloyds Banking Group and Goldman Sachs, took over the business from Bridgepoint and reduced its debts reducing debts by £146.8 million to £25.6 million.
FatFace’s profits tripled as the retailer continued its investment into expanding its store estate and strengthening third-party partnerships.
Profits for the fashion retailer skyrocketed 198% to £17.3 million, up from £5.8 million, in the 52 weeks to 27 May 2023.
The business also signed partnerships with Next and Marks & Spencer during the 2021/22 financial year, which helped to boost sales.
The business also signed partnerships with Next and Marks & Spencer during the 2021/22 financial year, which helped to boost sales.
FatFace’s acquisition will add to Next’s growing list of retail acquisitions and cement the group as one of the most prolific buyers of rival high street fashion chains.
Will Crumbie, CEO of FatFace commented: “This acquisition by Next today is an important next step in FatFace’s journey.
“Having worked together for some time as a commercial partner, Next has recognised the strong foundations – and importantly – future potential for FatFace.
“The acquisition is a testament to the hard work of our FatFace colleagues who have all done a terrific job of leading the business through the pandemic; building on the brand’s strong heritage, quality product and fantastic customer service to emerge even stronger in recent years.
“We have great momentum. This is about helping us reach more customers – whether that be in the UK or internationally – and becoming a part of the Next family, with the backing of their Total Platform infrastructure, will help us achieve this.”
It comes after Next announced in September it had become the largest shareholder in Reiss after it bought out private equity firm Warburg Pincus’ interest for £128 million.
The fashion giant snapped up the Made.com brand, domain names and intellectual property for £3.4 million after it was forced to appoint administrators back in November 2022.
Next started selling Gap clothing online in late 2021, after it took over the running of the high street brand.
It then started selling Gap clothing in stores in early 2022.
It also agreed a sale to buy struggling lingerie brand Victoria’s Secret in a move that saved its UK shops and website.
Earlier in 2022, it took a stake in baby and maternity clothing retailer JoJo Maman Bebe.
It was announced yesterday that Made will make a physical return to stores with a new concession in one of Next’s stores which is set to launch in December.