HIGH street fashion chain with 180 stores across the UK has been sold to Next.
FatFace, the UK’s leading lifestyle retailer, has acquired Next for a valuation of £115.2m.
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Next was bought by FatFaceCredit: PA
It comes after it was announced that FatFace’s owners had appointed Rothschild to advise on strategic options in May last year.
The company, which operates online and from 180 stores across the UK, enjoyed strong sales growth during its last financial year.
FatFace stores will continue to operate as a separate entity, but customers can still purchase the brand’s clothing on the Next website.
FatFace was founded by Tim Slade in 1988 selling T-shirts in the French ski resort of Méribel, and opened its first retail store in London in 1993.
In 2007, FatFace was acquired by private equity group Bridgepoint Capital for £360 million.
But in 2020, Fat Face’s lenders, Lloyds Banking Group and Goldman Sachs, took over the business from Bridgepoint and reduced debts by reducing debts by £146.8m to £25.6m.
FatFace’s profits tripled as the retailer continued to invest in expanding its store and strengthening third-party partnerships.
The fashion retailer’s profits surged 198% to £17.3m, up from £5.8m, in the 52 weeks to 27 May 2023.
The company also signed partnerships with Next and Marks & Spencer during the 2021/22 financial year, which helped boost sales.
The company also signed partnerships with Next and Marks & Spencer during the 2021/22 financial year, which helped boost sales.
FatFace’s acquisition will add to Next’s growing list of retail acquisitions and cement the group as one of the most prolific buyers of rival streetwear chains.
Will Crumbie, CEO of FatFace, commented: “Today’s acquisition by Next is an important next step in FatFace’s journey.
“After working together as a commercial partner for some time, Next recognized the strong foundations – and more importantly – the future potential for FatFace.
“The acquisition is a testament to the hard work of our colleagues at FatFace who have all done a great job leading the business through the pandemic; building on the brand’s strong heritage, quality product and fantastic customer service to become even stronger in recent years.
“We have a lot of momentum. This is about you helping us reach more customers – whether that’s in the UK or overseas – and that will help us become part of the Next family, supported by their Total Platform infrastructure.”
It came after Next announced in September that it had become the largest shareholder in Reiss after buying a stake from private equity firm Warburg Pincus for £128m.
The fashion giant has snapped up the Made.com brand, domain names and intellectual property for £3.4m after being forced to appoint administrators back in November 2022.
Next began selling Gap clothing online in late 2021, after taking over the running of the high street brand.
Then, in early 2022, he began selling Gap clothing in stores.
It also brokered a sale to buy ailing lingerie brand Victoria’s Secret in a move that saved its UK stores and website.
Earlier in 2022, it took a stake in baby and maternity clothing retailer JoJo Maman Bebe.
Yesterday it was announced that Made will be physically returning to stores with a new concession in one of Next’s stores due to launch in December.
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