Russell & Bromley, a luxury British footwear and handbag retailer founded in 1873, collapsed into administration earlier this year, owing more than £59 million, according to recent documents. The company, which once operated 43 stores across the UK, now has just three remaining outlets after a pre-pack insolvency procedure saw Next acquire the brand for £2.5 million in January.
Store Closures and Job Losses
The deal with Next included the purchase of the brand and selected assets. Administrators assessed the future of the retailer's physical store portfolio, resulting in the closure of 40 shops and the loss of 400 jobs. Only three stores—two in London and one in Stone—were retained by Next.
Financial Troubles
Documents reveal that Russell & Bromley owed over £59 million when it entered administration. In the two years prior, the business accumulated £20 million in losses and sold multiple properties to fund operations, according to the Express.
Broader Retail Context
The collapse comes amid a surge in UK business administrations, which rose by 41% in January 2026. Official Insolvency Service figures show 151 businesses entered administration that month, a 14% increase from January 2025. High-street collapses, rising wages, weak consumer spending, and elevated operating costs have fueled this trend.
Sarah Rayment, managing director and global co-head of restructuring at Kroll, said: "The key question at this point in the year is whether distress and insolvencies will continue to rise given the pressures facing UK businesses. The reality is that every sector will face headwinds this year."
Personal Impact on Directors
Todd Davison, managing director at Purbeck Insurance Services, highlighted the personal risks for company directors. "Many directors will have signed personal guarantees to secure loans, overdrafts or trade finance," he said, cautioning that defaulted guarantees can put personal assets, including property and savings, at risk.
Other notable brands that have entered administration this year include National Car Parks (NCP), which operated for nearly 100 years, and Denby Pottery, a globally recognized brand trading since 1809.
