Fears are mounting regarding the fate of numerous Russell & Bromley shoe stores following the exclusive sale of the brand. The renowned fashion retailer Next has acquired the brand name and certain assets, excluding its 33 stores and nine concessions in the UK and Ireland, employing approximately 400 individuals.
Established in Eastbourne, East Sussex in 1879, the family-owned Russell & Bromley operates as a proudly British brand. Despite its long history, the retailer has encountered challenges in a competitive market, experiencing declining sales and widening losses.
The sale to Next was executed through a pre-pack insolvency process overseen by Interpath, an advisor appointed in October to explore strategic options and facilitate a five-year turnaround led by CEO Andrew Bromley, a family member.
Interpath disclosed that Next would take over the Russell & Bromley brand, intellectual property, and manage three stores in Chelsea, Mayfair, and the Bluewater Shopping Centre under license. The transaction cost for the brand name and IP is £2.5 million, with Next paying £1.3 million for existing stock. Additionally, around 40 employees will transition to Next.
Andrew Bromley stated, “After a thorough strategic review with external consultants, we have made the tough decision to sell the Russell & Bromley brand. This path is the best way to secure the brand’s future, and we express gratitude to our staff, suppliers, partners, and loyal customers for their ongoing support.”
Notably, the deal does not encompass the 33 stores and nine concessions excluded from the transaction. These outlets will continue operating while administrators consider various options, including potential closure or management by another entity, possibly in collaboration with Next and store owners.
Will Wright, Interpath’s UK CEO, emphasized the brand’s rich history and commitment to quality craftsmanship over the years. He affirmed the intention to sustain operations at the remaining stores as they explore available alternatives.
Next emphasized that the acquisition ensures the future of the beloved British footwear brand. The company aims to build on the brand’s legacy, providing operational stability and expertise to support Russell & Bromley’s forthcoming endeavors in designing premium footwear and accessories.
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