Next confirms takeover of Fatface in £115m deal

British retail giant Next has announced it will buy clothing brand Fatface for £115m.

The company said that Fatface will continue to be run by its own management and keep its "creative independence".

Fatface has 180 UK shops and will retain its base in Hampshire.

It marks the latest High Street buy for Next, which has snapped up Cath Kidston and Joules in the last year.

In 2022, it also bought furniture brand Made.com.

Fatface was taken over by a consortium of lenders in 2020 when shops were struggling during the Covid pandemic and Next has sold its clothes online since 2016.

As well as taking over companies, Next has been buying stakes in other retailers such as JoJo Maman Bébé and Reiss to expand its e-commerce business. These firms pay Next to use its online logistics and operations.

Fatface chief executive Will Crumbie, who will continue to lead the company, said the deal marked "an important next step in Fatface's journey".

"Having worked together for some time as a commercial partner, Next has recognised the strong foundations, and importantly, future potential for Fatface," he said.

Last year, it was reported that Fatface had hired investment bank Rothschild to find a buyer for the business.

But in the 12 months to 27 May, Fatface reported pre-tax profits of £19.5m on sales up 15% at £282m.

Alice Price, associate apparel analyst at research firm GlobalData, said that it should be a "financially sound investment" for Next, as the firm is keen to add more clothes in its middle and higher price ranges.

"[Next] recognises consumers are prioritising higher quality products to achieve better value for money during the cost-of-living crisis, so FatFace's market positioning should help it achieve this goal," she said.

Fatface is well-known for its relaxed clothing style and Mr Crumbie said he hoped the deal would mean the brand would be able to reach more customers.

It is expected that Fatface will continue to run its own stores.

The deal, which is likely to complete in the next few weeks, will see Next pay Fatface's current owners using a combination of cash and new shares in Next.

Fatface's current bosses will retain a 3% stake in the business.