Next in the process of possibly selling Reiss stake

High street clothing retailer Next is currently engaged in discussions over the potential sale of Reiss, the fashion chain it controls, in a deal that could value Reiss at more than £500m.

According to Sky News, quoting insider sources, Next and its co-shareholder Warburg Pincus are working with bankers to organize an auction for Reiss, which was founded by David Reiss in 1971.

It said investment bank Raymond James had been appointed to oversee the sale process.

Sky said the auction had already reached its second round, with multiple potential buyers showing interest.

It reported that based on projected EBITDA for the current financial year, Reiss could be valued at more than £500m.

At present, the identity of the possible buyers was not known, with the possibility that Next could be going through the process to establish a market price to acquire Warburg Pincus' remaining interest raised by a retail executive quoted by Sky.

When approached for comment, Next, Warburg Pincus, and Raymond James all declined to provide statements to Sky News.

Reporting by Josh White for Sharecast.com.