Next buys high street rival Fat Face for £115.2m
Next buys high street rival Fat Face for £115.2m after snapping up Made.com, Joules and Cath Kidston
- It comes amid a buying spree from Next who’ve snapped up shops post-Covid
- FatFace said the deal comes after a ‘strong’ period of trading with high profits
Next has agreed to buy high street rival Fat Face after it has already bought Made.com, Joules and Cath Kidson, among other well-known brands.
The retailer will buy over 200 stores for £115.2million from a consortium of financial institutions that took control of the business three years ago.
It is the latest in a flurry of acquisitions by Next after buying brands. The retailer also runs 460 of its own shops.
Next said it will have 97 per cent ownership of the business after the deal, with Fat Face’s management holding the remaining 3 per cent.
Will Crumbie, chief executive of Fat Face, said: ‘This acquisition by Next today is an important next step in Fat Face’s journey.
Next will buy over 200 stores for £115.2million from a consortium of financial institutions that took control of the business three years ago
Next is run by Tory peer and ardent Brexiteer Lord Wolfson who has been snapping up British brands that have been going into administration post-pandemic
‘Having worked together for some time as a commercial partner, Next has recognised the strong foundations, and importantly, future potential for Fat Face.
‘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.’
Mr Crumbie, who joined Fat Face in 2014 and became chief executive in 2021, will stay at the helm of the business, Next said.
The brand will keep its own board of directors, retain its ‘creative independence’ and continue to be based in Havant, Hampshire.
Fat Face said the deal comes after a ‘strong’ period of trading, with total sales of £282 million for the year to May. It also recorded a pre-tax profit of £19.5 million for the period.
Tory peer and ardent Brexiteer Lord Wolfson owns Next and has been snapping up British brands that have been going into administration post-pandemic.
The firm also got Cath Kidston which fell into administration earlier this year.
It also owns furniture brand Made.com, baby product retailer JoJo Maman Bebe and the majority stake of the UK holdings of both US clothing firm Gap and lingerie retailer Victoria’s Secret after their British operations ran into trouble.
Next also owns a majority stake in US luxury clothing chain REISS, whose fans include the Duchess of Cambridge.
The prolific buying spree means Next has effectively displaced billionaire Mike Ashley’s Frasers Group as the UK’s most frequent acquirer of smaller retail brands.
Post-pandemic, a lot of stores have gone into financial administration and FatFace is just the latest store to be bought along with Joules and Cath Kidson
FatFace was founded in 1988 and its products range from women’s clothes, men’s, kids’, footwear and accessories.
As well as its UK stores, it has a digital business as well as 20 stores in the US.
The business was founded by entrepreneurs Tim Slade and Jules Leaver on a skiing holiday.
Needing more money to continue their trip, they sold t-shirts at night from the back of a camper van.
FatFace was bought by private equity firm Bridgepoint in 2007 for £360million from Advent International.
FatFace’s owners appointed Rothschild to advise on strategic options in May last year, according to reports.
Next has a market value of £8.75billion and has already raised profit forecasts.
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