Upon completion of the deal, which is subject to regulatory clearance, Next will make an equity investment of £33 million (US$46 million) and a debt investment of £10 million (US$ 13.9 million), financed from Next’s own cash resources.

As part of the agreement, Reiss will transition its online platform, warehouse, distribution and logistics to the Next Total Platform, with Reiss benefiting from Next’s infrastructure capabilities and enable Reiss’s growth plans, both in the UK and internationally.

Under the terms of the agreement, Next has an option to acquire an additional 26% interest at pre-agreed terms which, if exercised, would take Next’s holding to 51%. The option falls away after July 2022.

Reiss will retain its management autonomy and creative independence, as well as continue to have its own independent Board of Directors.

In the year to February 1, 2020, Reiss achieved turnover of £227.4 million (US$317.1 million) through all its sales channels, an increase of 22% on the prior year.

The company currently operates in 14 countries from 79 stores, 104 concessions and via wholesale and franchises. In its first year, after accounting for integration and acquisition costs, the investment is expected to have minimal impact on Next group profits but it expects a positive contribution thereafter.