In a strategic move, the British fashion and homeware retailer Next has acquired the iconic footwear brand Russell & Bromley out of administration for £3.8 million. The deal, which includes the brand and other assets worth £1.3 million in stock, is the latest in a series of acquisitions for Next, which now controls a diverse portfolio of labels ranging from FatFace to Made.com.
Founded in 1879 in Eastbourne, East Sussex, Russell & Bromley has been a family-owned business until now. The brand, which operates 36 stores and nine concessions across the UK and Ireland, has been facing tough times, with the company’s chief executive, Andrew Bromley, citing a “strategic review with external advisers” as the reason behind the decision to sell the brand.
While the rescue deal secures the future of the much-loved British footwear brand, it comes at a cost. Next will only be taking on three stores – in Chelsea, Mayfair, and the Bluewater shopping centre – and around 48 store staff. The remaining 33 stores and nine concessions not included in the deal will remain open and continue to trade, but it is understood that around 400 jobs are likely to be lost.
Will Wright, the UK chief executive of Interpath, which is acting as the administrator to Russell & Bromley, said the intention is to continue to trade the remaining portfolio of stores for as long as possible while exploring options for them.
“Across its 147-year history, Russell & Bromley has been at the forefront of contemporary style,” Wright said. “We’re pleased therefore to have concluded this transaction, which will preserve the brand and the commitment to quality craftsmanship that it has become so well known for.”
The acquisition by Next comes at a challenging time for the retail industry, with clothing, footwear, and homeware retailers facing a tough environment as consumers rein in spending on non-essential items amid a surge in the cost of energy bills, rent, and groceries.
The UK arm of accessories and ear-piercing chain Claire’s and The Original Factory Shop homeware chain are both on the brink of administration, while JD Sports, the clothing and trainer group, has reported a 5.3% drop in sales at its established UK stores in the nine weeks to 3 January.
Next, however, remains optimistic about the future of Russell & Bromley, with the company stating that it “intends to build on this legacy and provide the operational stability and expertise to support Russell & Bromley’s next chapter, allowing it to return to its core mission, the design and curation of world-class, premium footwear and accessories, for many years to come.”
