NEXT continues expansion with £115 million FatFace acquisition
NEXT is tightening its grip on the UK high street confirming the acquisition of fashion and lifestyle retailer FatFace for £115.2 million.
The deal will allow FatFace to continue driving its growth plans over the coming years, still led by Will Crumbie, who was appointed as chief executive in 2021.
It comes just three years after FatFace was taken over by lenders and builds on the brand's existing trading relationship with NEXT, via its LABEL online third-party brands business.
Will Crumbie, CEO of FatFace, said: "This acquisition by NEXT today marks 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.
"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."
NEXT, which is led by Conservative peer Lord Simon Wolfson, said it will have 97% ownership of the business after the deal, with FatFace management holding the remaining 3%.
The move makes FatFace one of a number of brands in which NEXT has invested in or acquired over recent years. The high street giant typically acquires large stakes in third-party brands and, while allowing them to run as autonomous entities, absorbs them into its Total Retail omnichannel platform.
The news comes after FatFace reported a 15% increase in sales to £282 million for the 52 weeks ending 27 May 2023, with digital channels continuing to perform ahead of expectations.
Last month, NEXT became the largest shareholder in Reiss, owning 72% of its shares, after it bought out private equity firm Warburg Pincus’ interest for £128 million. It had already owned more than 50% of the premium fashion brand. It also acquired baby and maternity retailer JoJo Maman Bébe and fashion and lifestyle brand Joules last year, as well as buying lifestyle brand Cath Kidston out of administration in March.
In addition NEXT operates the UK retail and e-commerce businesses for US giant Victoria's Secret and GAP via joint venture deals.
Timeline: NEXT's third-party brand expansion
October 2023: Acquires FatFace for £115 million
September 2023: Increases its stake in Reiss to 72%
April 2023: Launches Joules on its Total retail platform
March 2023: Agrees to buy Cath Kidston out of administration
March 2023: Brings GAP's Athleta brand to the UK (online) via its GAP joint venture
December 2022: Confirms acquisition of Joules
November 2022: Brings Banana Republic back to the UK (online) via GAP joint venture
November 2022: Opens fifth GAP shop-in-shop in Glasgow
November 2022: Acquires online furniture retailer Made.com
August 2022: GAP migrates UK e-commerce to NEXT Total platform
April 2022: Increases stake in Reiss to 51%
April 2022: Acquires 44% stake in JoJo Maman Bébé
March 2022: Opens first GAP shop-in-shop on Oxford Street
February 2022: Migrates Reiss on Total retail platform
November 2021: Strikes up partnership to operate GAP's UK stores and e-commerce
March 2021: Acquires 25% stake in Reiss
January 2021: Pulls out of race to acquire Topshop from collapsed Arcadia. The brand is then sold to ASOS
September 2020: Seals the JV deal to operate Victoria's Secret UK stores and e-commerce
