Fears are rising over the fate of numerous Russell & Bromley shoe stores following the brand’s recent acquisition. Next, a prominent fashion retailer, has purchased the brand name and certain 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. However, the company has faced challenges in a competitive market, experiencing declining sales and widening losses.
The sale to Next was completed through a pre-pack insolvency process overseen by Interpath, an advisor appointed in October to explore options and support a five-year turnaround led by Andrew Bromley, a family member and the CEO.
Interpath confirmed that Next would acquire the Russell & Bromley brand, intellectual property, and three specific stores in Chelsea, Mayfair, and the Bluewater Shopping Centre under a licensing agreement. The transaction for the brand and IP was valued at £2.5 million, with an additional £1.3 million paid by Next for existing stock. Approximately 40 employees are set to transition to Next as part of the deal.
Andrew Bromley stated, “After a strategic review with external advisors, we have made the tough decision to sell the Russell & Bromley brand to secure its future. We appreciate the support of our staff, suppliers, partners, and customers throughout our history.”
The 33 stores and nine concessions not included in the acquisition will continue operations as the joint administrators explore various options for their future, which could range from closure to potential partnerships with other companies, including Next or the current store owners.
Will Wright, the UK CEO of Interpath, emphasized the brand’s rich history and commitment to quality craftsmanship, expressing satisfaction with the transaction that aims to maintain the brand’s legacy and standards.
Next affirmed its commitment to upholding the British footwear brand’s heritage, mentioning plans to provide operational support for Russell & Bromley’s continued success in delivering premium footwear and accessories for years to come.