The deal is set to be partially financed by cash and partly through the issue of new Next shares. FatFace's management will hold a 3 per cent stake in the business and will also participate in an additional performance-related equity scheme. After completion, Next will hold 97 per cent of the equity in FatFace.

FatFace will retain its management autonomy and creative independence under the new structure. The company will continue to have its own Board of Directors and will remain based in Havant, Hampshire. FatFace, which has been a Label brand on Next since 2016, is also expected to migrate its online operations onto Next's Total Platform within the next twelve months, Next said in a press release.

The acquisition follows a period of strong trading for FatFace, which reported total sales of £282 million in the 52 weeks to 27 May 2023. The company also posted a statutory profit before tax of £19.5 million for the same period. Digital channels currently account for 40 per cent of FatFace's sales, with the remainder largely coming from its retail stores. It is anticipated that FatFace will continue to develop its retail store portfolio under its existing management team.

Will Crumbie, who has been with FatFace since 2014 and took over as CEO in 2021, will continue to lead the business post-acquisition.

Fibre2Fashion News Desk (DP)