Next confirms consortium bid for Topshop-owner Arcadia
Next has confirmed that it is part of a consortium bidding for Arcadia brands, but said it was not seeking majority ownership of Sir Philip Green’s collapsed business empire.
It was reported last month that the high street retailer was holding detailed discussions with Davidson Kempner about a combined offer for Arcadia, the owner of Topshop, Dorothy Perkins and Miss Selfridge.
The companies are “likely but not certain” to launch a bid for the retail empire, Sky News reported in December, citing sources.
Davidson Kempner would reportedly provide most of the funding for the takeover and would own the majority of the Arcadia business if a deal is completed.
The retailer has also reportedly been in discussions with other financing partners including private equity firm Carlyle and turnaround specialist Alteri Investors.
In an interview with Reuters this morning, Next chief executive Simon Wolfson confirmed that the company was not looking to take a majority stake in Arcadia.
It comes as Next reported a surge in online sales over the Christmas period, with profit set to beat expectations for the year and help offset high street losses.
Full-price sales fell 1.1 per cent in 2020 compared to the year before, beating its central guidance of an eight per cent annual loss given in October.
Shares rocketed 8.1 per cent to 7,462p at market open.