Next has taken upmarket footwear and accessories brand Russell & Bromley out of bankruptcy in a £2.5m deal, but the majority of the chain’s stores and hundreds of jobs remain at risk.
The high street fashion group has taken over the Russell & Bromley brand, three of its 36 standalone stores and a tranche of existing stock, paying a further £1.3 million. The remaining 33 branches and nine concession branches with around 400 employees are not included in the transaction and are currently being reviewed by the administrators.
Interpath administrators said the unacquired stores would continue to trade for now while options were considered, including possible closures or further sales.
Russell & Bromley chief executive Andrew Bromley described the sale as a “difficult decision” but said it offered the best chance of securing the long-term future of the brand. The company, founded about 150 years ago, has struggled in recent years with rising costs and weaker consumer spending.
Next said the acquisition will “secure the future of a beloved British footwear brand,” adding that it aims to provide the operational stability and expertise needed to support Russell & Bromley’s next chapter. The retailer said the focus will be on returning the brand to its core competency of high-quality footwear and accessories.
The three stores acquired by Next are located in prime locations in and around London, including Chelsea, Mayfair and Kent.
Russell & Bromley is the latest name to face an uncertain future on Britain’s high streets, joining a growing list of retailers to declare bankruptcy in recent months. The Original Factory Shop and Claire’s are currently undergoing restructuring processes, while around 1,000 jobs were lost following the collapse of Bodycare last year. River Island has also announced plans to close branches to prevent a major collapse, following previous high-profile collapses such as Debenhams and Wilko.
Next has fared comparatively well during retail’s turbulent times and has a track record of acquiring struggling brands. Last year, the company bought maternity clothing label Seraphine out of bankruptcy and previously integrated FatFace through its concessions model.
While Next’s move secures the Russell & Bromley name, the fate of the majority of its physical estate – and the jobs associated with it – will depend on the outcome of the review by administrators in the coming weeks.
