Fears have arisen regarding the fate of numerous Russell & Bromley shoe stores following the brand’s recent sale. Leading fashion retailer Next has acquired the brand name and selected assets, excluding its 33 stores and nine concessions in the UK and Ireland, which employ approximately 400 individuals.
Established in 1879 in Eastbourne, East Sussex, the family-owned Russell & Bromley has a strong British identity. Nevertheless, the retailer has faced challenges in a highly competitive market, experiencing declining sales and widening losses.
The sale to Next was facilitated through a pre-pack insolvency process managed by Interpath, a consultancy appointed in October to explore options and support a five-year turnaround plan led by Andrew Bromley, a family member and the CEO.
Interpath disclosed that Next would take ownership of the Russell & Bromley brand, intellectual property, and acquire three specific stores in Chelsea, Mayfair, and the Bluewater Shopping Centre, which will operate under license. The deal for the brand and intellectual property amounts to £2.5 million, with an additional £1.3 million paid by Next for existing stock. Approximately 40 employees will transition to Next as part of the acquisition.
Commenting on the decision, Andrew Bromley stated, “After conducting a strategic review with external advisors, we have made the tough choice to sell the Russell & Bromley brand to ensure its future. We express gratitude to our staff, suppliers, partners, and customers for their unwavering support over the years.”
The transaction does not include 33 stores and nine concessions, which will continue to operate as the joint administrators evaluate potential options for them, including the possibility of closure or finding a new operator in collaboration with Next or the store owners.
Will Wright, the UK CEO of Interpath, emphasized the brand’s historical significance and commitment to quality craftsmanship, expressing satisfaction with finalizing the deal to preserve Russell & Bromley’s legacy. The intention is to maintain operations for the remaining stores while exploring future strategies.
Next affirmed that the acquisition safeguards the future of the beloved British footwear brand, aiming to uphold its legacy and provide operational stability to support its continued success in delivering premium footwear and accessories.
For exclusive money news and top deals, join our Money WhatsApp group and sign up for Mirror’s Money newsletter to receive the best advice and shopping offers directly to your inbox.