Next has agreed to buy the Russell & Bromley footwear brand out of administration for £3.8 million, securing the future of the 145-year-old name but leaving hundreds of jobs at risk as dozens of stores fall outside the deal.
The British retailer, founded in 1879 in Eastbourne, has been struggling amid a tough trading environment for the high street.
While the rescue preserves the brand and its intellectual property, the majority of Russell & Bromley’s physical retail estate will not transfer to Next.
Limited store rescue leaves jobs uncertain
Russell & Bromley currently trades from 36 stores and nine concessions across the UK and Ireland.
Under the terms of the deal, Next will take on just three flagship stores, located in Chelsea, Mayfair and the Bluewater Shopping Centre in Kent.
Around 48 store staff are expected to transfer as part of the acquisition.
However, roughly 400 jobs are likely to be lost at the 33 stores and nine concessions not included in the transaction.
Administrators from Interpath said the remaining stores would continue trading for now while options are assessed, including potential sales or closures.
Brand and stock form the core of the deal
The acquisition includes Russell & Bromley’s brand and related assets, as well as about £1.3 million worth of stock.
Financial details beyond the headline £3.8 million price were not disclosed.
Next said the purchase would allow the footwear label to refocus on its heritage as a premium brand, centred on design, craftsmanship and curation, rather than supporting a costly bricks-and-mortar network.
Andrew Bromley, chief executive of Russell & Bromley and a member of the founding family, said the decision to sell followed a strategic review with advisers.
“This is the best route to secure the future for the brand,” he said, thanking staff, suppliers and customers for their support.
Next’s growing stable of brands
The deal is the latest in a series of opportunistic acquisitions by Next, which has built a diverse portfolio of fashion and lifestyle brands in recent years.
It has previously snapped up Cath Kidston, Joules and maternitywear retailer Seraphine at distressed valuations, alongside acquiring Made.com’s brand and intellectual property after its collapse.
Next also runs the UK operations for Gap and Victoria’s Secret and owns stakes in brands including FatFace.
Under the long leadership of Lord Wolfson, the retailer has been widely praised for its disciplined approach to costs, stock management and online logistics.
A challenging backdrop for retail
The rescue of Russell & Bromley highlights the pressures facing even long-established retailers as consumer spending remains subdued and operating costs stay high.
A string of familiar names have entered administration in recent months.
The Original Factory Shop and accessories chain Claire’s are both undergoing restructuring processes, while Bodycare’s collapse last year led to around 1,000 job losses.
River Island has also announced store closures in an effort to avoid a wider failure.
Next recently upgraded its full-year profit forecast after a strong Christmas trading period, underlining the growing divide between well-capitalised operators and struggling high street peers.
For Russell & Bromley, the deal offers a chance of survival as a brand, even as its physical footprint shrinks sharply.
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