Britain's Next buys 25% stake in rival Reiss

FILE PHOTO: A Next logo is seen outside a store in central London

LONDON (Reuters) - British clothing retailer Next has agreed to acquire a 25% stake in upmarket smaller rival Reiss and has an option to take its holding to 51%, it said on Wednesday.

Next said it will pay 33 million pounds ($46 million) for the equity and also make a debt investment of 10 million pounds, financed from its cash resources.

The group has an option to acquire an additional 26% interest at pre-agreed terms. The option falls away after July 2022.

(Reporting by James Davey; Editing by Kate Holton)