Next Steps In to Rescue Historic Footwear Brand Russell & Bromley
In a significant move within the British retail sector, fashion and homeware giant Next has acquired the historic footwear brand Russell & Bromley from administration for £3.8 million. While this transaction secures the future of the 147-year-old brand, it comes with a heavy human cost, as approximately 400 jobs are likely to be lost at 33 stores and nine concessions not included in the deal.
The Details of the Acquisition
The rescue package, facilitated by administrators Interpath, includes the Russell & Bromley brand name, various other assets, and approximately £1.3 million worth of existing stock. However, Next will only be taking on three specific physical locations: the stores in Chelsea, Mayfair, and the Bluewater Shopping Centre. This means the future of the remaining 33 standalone stores and nine concessions across the UK and Ireland is now uncertain, putting hundreds of retail positions at immediate risk.
Founded in 1879 in Eastbourne, East Sussex, Russell & Bromley has been a family-owned business and a staple of the British high street, renowned for its premium footwear and accessories. The decision to sell was described as difficult by the company's chief executive, Andrew Bromley, who stated it followed a strategic review with external advisers.
Next's Expanding Brand Portfolio
This acquisition marks the latest addition to Next's rapidly expanding portfolio of brands, which now includes a diverse range of names from FatFace and Joules to the failed online furniture retailer Made.com. Next also handles the UK distribution for major international brands like Gap and Victoria's Secret. The company has been on an aggressive acquisition spree, capitalising on opportunities within the struggling retail landscape.
In an official statement, Next outlined its vision for the brand: "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." The focus, according to Next, will be on returning the brand to its core mission of designing and curating world-class, premium footwear.
Uncertain Future for Remaining Stores and Staff
Will Wright, head of Interpath Advisory and the joint administrator for Russell & Bromley, confirmed that the stores not part of the Next deal would remain open for trading in the short term. "Our intention is to continue to trade the remaining portfolio of stores for as long as we can, while we explore the options available," Wright stated. He expressed satisfaction that the transaction would preserve the brand and its commitment to quality craftsmanship.
For the staff at the excluded locations, this period represents a time of significant anxiety. The administrators will be assessing all possible outcomes for these outlets, which could include further sales, closures, or other restructuring measures. The potential loss of 400 jobs underscores the ongoing volatility and challenges within the physical retail sector, even as larger conglomerates like Next continue to grow through strategic acquisitions.
This development follows recent news of Next's strong financial performance, with the retailer expecting profits to exceed £1.1 billion after a successful festive sales period. The rescue of Russell & Bromley demonstrates Next's strategy of absorbing established brands with strong heritage, though often at the expense of their original retail footprint and workforce.
