NEXT eyes £100m deal to buy FatFace

NEXT is understood to be closing on a deal worth more than £100 million to buy British fashion brand FatFace.

The high street giant is said to be finalising a deal to acquire FatFace, just three years after it was taken over by lenders.

The deal could be announced later this week, according to Sky News.

Last year, it was reported that the retail business, which has around 180 UK shops, had hired investment bankers in order to strike a sale.

If successful, FatFace will become one of a number of brands in which NEXT has invested in or acquired over recent years.

Last month, NEXT became the largest shareholder in Reiss after it bought out private equity firm Warburg Pincus’ interest for £128 million.

It also previously acquired JoJo Maman Bebe and Joules last year, as well as buying Cath Kidston out of administration in March.

The move 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.