High street fashion group Next has bought shoe retailer Russell & Bromley out of administration in a £2.5m deal, securing the brand but leaving the future of most stores and staff uncertain.
Deal Secures Brand And Three Stores
Under the rescue agreement, Next will take ownership of the Russell & Bromley brand, acquire three of its 36 stores, and purchase selected stock for an additional £1.3m. The three stores are located in high-end shopping areas in Chelsea, Mayfair, and Kent.
The remaining stores will not be part of the acquisition.
Jobs And Stores Still At Risk
Administrators Interpath said they are assessing the future of the remaining 33 standalone stores and nine concession outlets, which together employ around 400 people. All stores not included in the sale will remain open for now while options are explored.
Russell & Bromley chief executive Andrew Bromley said the decision to sell the brand was difficult but represented the best chance of preserving its long-term future.
Longstanding Brand Hit By Retail Pressures
Founded around 150 years ago, Russell & Bromley has become the latest established retailer to struggle amid a challenging high street environment. The company has been loss-making in recent years, reflecting broader pressures facing bricks-and-mortar retailers.
It joins a growing list of chains entering administration, a process that often leads to brands being broken up and assets sold separately. The Original Factory Shop and accessories retailer Claire’s are currently undergoing administration, while around 1,000 jobs were lost when Bodycare collapsed last September. River Island has also announced store closures to avoid a wider collapse, following earlier high-profile failures such as Debenhams and Wilko.
Next Positions Itself As A Retail Rescuer
In a statement, Next said it had secured “the future of a much loved British footwear brand” and intends to provide operational stability and expertise to support Russell & Bromley’s next phase, returning the label to its focus on premium footwear and accessories.
Next has performed relatively strongly compared with many peers during recent retail turbulence and has experience acquiring distressed brands. Last year, it bought maternity fashion label Seraphine out of administration and previously expanded FatFace through its concession model after acquiring the brand.
Featured image credits: Flickr
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