Next Rescues Russell & Bromley Brand in Pre-Pack Deal
In a significant move within the UK retail sector, high street giant Next has acquired the luxury footwear and accessories brand Russell & Bromley from administration through a pre-pack insolvency arrangement. The deal, confirmed by administrators, secures the future of the iconic British label but casts uncertainty over the majority of its physical store network.
Store Portfolio and Employment Impact
Russell & Bromley currently operates 36 stores and nine concessions across the United Kingdom and Ireland, employing approximately 440 people. However, Next has revealed that it will retain only three of these locations as part of the acquisition: the shops in Chelsea, Mayfair, and the Bluewater Shopping Centre. This leaves 33 stores and all nine concessions at risk, with administrators from Interpath actively exploring options for these remaining outlets, which continue to trade in the interim.
Financial Details and Strategic Rationale
Next will pay £2.5 million for the Russell & Bromley brand and its intellectual property, along with an additional £1.3 million for a portion of the current stock. In an official statement, Next emphasised its commitment to preserving the brand's heritage, stating: "This acquisition secures the future of a much-loved British footwear brand. Next intends to build on this legacy and provide the operational stability and expertise to support Russell & Bromley’s next chapter, allowing it to return to its core mission: the design and curation of world-class, premium footwear and accessories for many years to come."
Leadership and Administrator Perspectives
Andrew Bromley, chief executive of Russell & Bromley, explained the decision, noting: "Following a strategic review with external advisers, we have taken the difficult decision to sell the Russell & Bromley brand. This is the best route to secure the future for the brand, and we would like to thank our staff, suppliers, partners and customers for their support throughout our history." The brand, founded in 1879 in Sussex, has a rich 147-year history.
Will Wright, Interpath’s UK chief executive, commented on the transaction: "Across its 147-year history, Russell & Bromley has been at the forefront of contemporary style. We’re pleased therefore to have concluded this transaction, which will preserve the brand and the commitment to quality craftsmanship that it has become so well known for. Our intention is to continue to trade the remaining portfolio of stores for as long as we can, while we explore the options available."
Broader Implications for Retail
This acquisition highlights the ongoing consolidation and challenges within the UK retail landscape, particularly for heritage brands. While Next's move ensures the Russell & Bromley name endives, the fate of its extensive store network underscores the pressures facing brick-and-mortar retail in an increasingly digital marketplace. The deal represents a strategic effort to leverage Next's operational scale to revitalise a premium brand, albeit with a significantly reduced physical footprint.
