UK-based high street clothing chain Next is reportedly in talks about the sale of fashion brand Reiss.

Sky News reported that the company is working with fellow Reiss shareholder Warburg Pincus on a deal that could value the brand at more than £500m.

Investment banker Raymond James is said to have been appointed to auction off the business.

The news service company further reported that the auction was in its second round, with several parties showing interest in the clothing chain.

However, Sky News reported, citing sources close to Next, that it is doubtful that the company would sell the 51% stake.

In April 2021, Next agreed to acquire a 25% stake in Reiss from existing shareholders and purchased another 26% stake in 2022 as part of the pre-agreed terms, making it the majority owner of the chain with a 51% stake.

Reiss was founded in 1971 and offers men’s and women’s clothing and accessories. It operates through physical stores, online retail, wholesale, licensing, franchise and concession.

The company has more than 257 points of sale in 14 countries across the UK, the US, EMEA and APAC regions at the time of the acquisition in 2021.

Reiss recorded expected earnings before interest, tax, depreciation and amortisation (EBITDA) of almost £65m in the current financial year.

In August 2022, British lifestyle group Joules confirmed that it held talks with clothing and houseware chain Next for the potential sale of a minority stake.