Updated: Warburg Pincus rules out imminent exit from Reiss
The US private equity backer of Reiss, Warburg Pincus, has scotched rumours it is looking to sell its majority stake in the UK premium fashion retailer.
Warburg Pincus acquired a majority stake in the business in 2016, while its founder David Reiss retained a "significant" stake. At the time the deal valued the business at £230m.
The Daily Telegraph reported at the weekend that Warburg Pincus was preparing to appoint bankers this summer and that potential investors were circling the retailer.
In a statement sent to TheIndustry.fashion, a spokesperson for Warburg Pincus said the report was incorrect. “It is categorically untrue to say that bankers are going to be appointed to explore the sale of our investment in Reiss, or that the company is itself is up for sale," the spokesperson said.
While the UK high street has endued a torrid time of late, Reiss posted an 8.6% increase in sales to £186.3m in the year ending February 2019. Profits slumped by 67% to £4.6m but underlying earnings were up 21.3% to £19.3m.
Reiss has made its name with its contemporary workwear and formalwear. It began in 1971 as a menswear chain and moved into womenswear in 2000 picking up high profile fans in the form of both the Duchess of Cambridge and the Duchess of Sussex.
In 2017 David Reiss handed the CEO reins to Christos Angelides, one of the most respected executives on the high street who made his name heading up product for Next.