Luxury footwear and handbag retailer Russell & Bromley has permanently closed all its remaining stores after collapsing into administration with debts exceeding £59 million, bringing an end to 146 years on the British high street. The family-owned business, founded in 1880 by George Bromley and Elizabeth Russell, shut 33 stores not included in a rescue deal with fashion giant Next.
Administration and redundancies
Administrators from Interpath Advisory confirmed that all stores that did not transfer to Next have now closed, resulting in around 400 redundancies. A spokesperson for the joint administrators said: 'Following the announcement regarding the sale of the Russell & Bromley brand and certain assets to Next plc, the joint administrators can confirm that a phased closure programme for the remaining Russell & Bromley stores is now complete. All stores that did not transfer to Next as part of that transaction closed. Regrettably, these closures mean that the majority of employees working in the non-transferring stores have been made redundant.'
The administrators added that they are engaging closely with affected staff and assisting with claims to the Redundancy Payments Service.
Financial details
Court documents show the company owed approximately £59.3 million when administrators Will Wright and Chris Pole of Interpath Advisory were appointed. The business had accumulated losses of around £20 million over the past two years due to falling sales, rising operating costs, and weak consumer demand. Administrators noted that the retailer had historically relied on cash reserves and sold freehold properties to support operations. They stated: 'The group was relatively highly loss-making, with these losses due to a combination of falling sales, increasing operational costs, and a relatively high fixed cost base. Further to this, the wider UK market has been difficult for retail businesses with challenging trading conditions characterised by high inflation and suppressed consumer demand.'
The retailer's statement of affairs estimated a total deficiency of £35.7 million. Around £2.1 million had been drawn under a trade finance facility before NatWest exercised its right of set-off, using cash to clear the balance. Russell & Bromley also owed HM Revenue & Customs approximately £3.2 million. Administrators said HMRC may receive distributions from other group insolvencies, and unsecured creditors may eventually receive a dividend, though the final amount is undetermined.
Rescue deal and remaining stores
Next acquired the Russell & Bromley brand, selected assets, and three stores in Chelsea, Mayfair, and Bluewater shopping centre in Kent through a pre-pack administration deal. The remaining 33 stores and nine concessions were not included and have permanently closed.
Known for premium leather footwear and handbags, Russell & Bromley counted the Princess of Wales, Katie Holmes, and Billie Piper among its clientele. Despite its reputation for quality, the retailer had been unprofitable since 2019 and struggled to recover after the pandemic.
