Next looks ‘to buy FatFace’ in £100m deal

It looks like Next is on the acquisition trail again with news that it’s possibly set to buy FatFace following a string of purchases including Made.com, Joules, JoJo Maman Bebe and Cath Kidston.

That’s according to Sky News, which said Next is closing in on a deal worth over £100 million. It added that the company is “putting the finishing touches” to the acquisition, only three years after FatFace was taken over by its lenders, with suggestions that an agreement could be announced later this week.

Neither Next nor FatFace have commented on the story.

FatFace trades from around 180 stores in the UK and it was reported almost 18 months ago that its owners had taken on bankers to advise it about a sale.

Next, just like retail rival Frasers Group, has been actively buying companies and adding brands to its line-up in recent years.

As well as those mentioned above, it has also increased its stake in Reiss to majority control and struck partnership deals with Gap, Laura Ashley and Victoria’s Secret.

Buying FatFace would bring it a family-focused apparel and lifestyle retailer that’s a popular label in the UK and that’s also expanding internationally. 

It debuted in Canada only this summer following a successful trading performance in the US.

FatFace is majority owned for now by Bridgepoint Capital, although founders Tim Slade and Jules Leaver retain a stake. It’s run by CEO Will Crumbie.

Its last accounts, for the year to the end of May 2022, showed revenue rising to £234.8 million from £151.3 million and its swung to a net profit of £5.2 million from a loss of £11.2 million the year before.

Back in January, the company also reported Christmas sales up a hefty 34% as both digital and stores did well in the five weeks to 7 January.

At the same time, it said sales for the 26 weeks up to late November 2022, saw a 9% increase to £136 million, driven by recovery at its physical locations as footfall rose.