UPDATE: Reiss owner denies reports of potential sale

The owner of fashion retailer Reiss has called reports of a potential sale of its majority stake in the business as “categorically untrue”.

According to The Telegraph Warburg Pincus was considering the appointment of bankers to administer the sale with a formal process expected to start before the summer.

However a spokesperson at Warburg Pincus has confirmed to Retail Sector: “It is categorically untrue to say that bankers are going to be appointed to explore the sale of our investment in Reiss, or that the company is itself is up for sale”.

Warburg Pincus acquired a majority in the company, established in 1971 by founder David Reiss, three years ago in a deal valued at around £230m. Back in February Reiss reported a 67% drop in profits to £4.7m, despite sales growth of 8.3% to £186.3m.

The Telegraph also revealed that retail sources predict a sale could raise around £280m off pre-tax earnings of £19m. Reiss currently 160 stores across 15 countries including the US, Canada, Hong Kong and across Europe.