Private equity firm Elliott explores Reiss bid

US private equity firm Elliott Advisors is among a group of prospective bidders in talks to purchase British fashion brand Reiss.

The owner of books retailers Foyle's and Waterstones is reportedly one of the parties to have expressed an interest in buying Reiss from NEXT and its current shareholders Warburg Pincus, according to Sky News.

However, the publication said that it was unclear yesterday (21 June) whether Elliott would table a formal bid for the brand.

Last week, NEXT was reported to be considering the £500 million sale of Reiss, in which it owns a majority shareholding.

The company and Warburg Pincus appointed bankers at Raymond James to carry out an auction process.

However, sources suggested to Sky News that it remains possible that NEXT will decide not to sell Reiss, but instead seek to acquire Warburg Pincus's minority interest.

In recent years, NEXT has diversified its portfolio by acquiring a number of distressed retail brands, including Jo Maman Bebe, Joules and Cath Kidston.

Earlier this week, NEXT revealed that warmer weather and continued wage increases have sparked a jump in its sales in recent weeks. As a result, the retailer lifted its sales and profit guidance for the year.