Fashion label Lipsy snapped up by Next

The husband and wife founders of fashion label Lipsy were £3.5 million richer today after being bought out by retail giant Next.

Jeremy and Marcelle Stakol, who own 25% of the business, have sold up, along with their private equity backers, in a deal worth £17.4 million.

The brand is aimed at younger women and counts Prince William's girlfriend Kate Middleton and TV presenters Holly Willoughby and Alexa Cheung among its fans.

Under the deal, Next has bought the share capital of the company for £14m (€17.8m) , while also paying off £3.4m (€4.3m) worth of loans. Other undisclosed payments could follow in future years depending on performance.

Lipsy's existing management team, led by Mr Stakol, will also stay on and run the business.

Next said there were no plans to market the brand through its own stores, but the group will use its capital and expertise to help "accelerate" its development into a leading younger women's brand.

Lipsy was founded six years ago, and now boasts annual turnover of £20m (€25.4m).

Its clothes are sold through several major retailers including Top Shop, House of Fraser and Selfridges, as well as the internet.

The company is due to open its first store at Brent Cross shopping centre in North London next month, and reportedly had plans for as many as 25 sites across the UK.

Mrs Stakol said in a recent interview: "We've focused on making sure every piece is sexy and body conscious. The 12 women in the design team are living the Lipsy life – they go out at night and want something new to wear."

She said a picture of Ms Middleton wearing one of their dresses resulted in "thousands" of internet enquiries.

Mr Stakol said of the deal: "The prospect of working with one of the UK's leading fashion retailers to accelerate the development of Lipsy is exciting.

"Next's sourcing, supply chain, systems and logistics are among the best in the industry and we look forward to working with Next's experienced management team."

Next chief executive Simon Wolfson added: "We are delighted to welcome Lipsy to the Next group and look forward to helping develop their business in the years ahead."

Leicester-based Next had revenues of £3.3bn (€4.2bn) and pre-tax profits of £498 million (€635) in the year to January 2008.

More in this Section

Ireland's unemployment rate was more than 26% in MayIreland's unemployment rate was more than 26% in May

Another 20 McDonald's drive-thru restaurants have re-openedAnother 20 McDonald's drive-thru restaurants have re-opened

Budget airline Wizz Air boosts profits prior to virus uncertaintyBudget airline Wizz Air boosts profits prior to virus uncertainty

Figures show extent of Covid-19 impact on Ryanair's passenger numbersFigures show extent of Covid-19 impact on Ryanair's passenger numbers


Kim Sheehan is an opera singer from Crosshaven, Co Cork, and is this year’s recipient of the Jane Anne Rothwell Award from Cork Midsummer Festival.A Question of Taste: Cork opera singer, Kim Sheehan

Developed in Ireland by Dublin-based indie gaming house Dreamfeel, If Found follows university graduate Kasio as she returns to Achill, Co Mayo, from the big city.'If Found' is a nice discovery for Irish video-game scene

B-Side the Leeside: Cork's Greatest Records - Giordaí Ua Laoghaire tells Don O’Mahony about the offbeat outfit who created some of the most innovative music on the Irish scene in the 1990sB-Side the Leeside: Ciddy Hall - A quirky slice of creativity

More time indoors is a chance to consider how we buy for our homes without being slaves to fleeting trends, writes Carol O’CallaghanMore time at home offers a chance to consider how we buy for our interiors

More From The Irish Examiner