BOSSES of fashion chain Next are betting £2.6m on the business in the hope of collecting a windfall five times that size.

Next said four directors, including chief executive Simon Wolfson and other senior staff, are investing a total of about £1.5m in financial wager contracts based on the group's share price performance over four years.

Three of the directors and other staff are also investing the £1.1m net proceeds of a bonus granted to them by Next.

Next said the return on the investment, arranged through an unidentified independent third party, would vary between zero and a maximum of about five times the initial sum, depending on the performance of the group's share price during the four years.

A return of zero will be generated if the final share value after four years is £20 or less, while the maximum will be achieved if the value moves to £24.50 or more at that time.

Mr Wolfson is investing £500,000, while finance director David Keens is investing £200,000. Product director Christos Angelides is putting in £200,000, while property director Andrew Varley is investing £100,000.

Other unidentified senior staff are putting in a total of £480,000.

Mr Keens, Mr Angelides, Mr Varley and the senior employees are also investing their bonus after tax and National Insurance payments.

Mr Wolfson is not taking part in the bonus scheme.

Next said it was not subsidising, supporting or underwriting the contracts.

A spokesman for the group said Mr Wolfson and his colleagues wanted to put extra incentives in place to drive the share price up and to retain senior staff.

"I think they just wanted to do something a bit different and a bit more than the norm," he said.

In May, Next defied a difficult trading outlook to post a 17 per cent rise in retail sales.

Analysts forecast that the group will make pre-tax profits of £395m for the 12 months to January 31 next year. Analyst Nick Bubb, of Evolution Beeson Gregory, said: "The curious investment by the senior management of Next in a complicated four-year geared warrant shows they fancy their chances and are not scared of a revived M&S or of a post-election consumer slump."