In a significant move within the UK retail sector, high street giant Next has stepped in to acquire the prestigious footwear brand Russell & Bromley through a pre-pack administration agreement. The deal, valued at £2.5 million for the brand and its intellectual property, plus an additional £1.3 million for a portion of existing stock, has rescued the 145-year-old business from potential collapse.
A Strategic Acquisition with Selective Retention
Russell & Bromley, established in 1879, operates a network of 36 standalone stores and nine concessions across the United Kingdom and Ireland, employing around 440 staff members. However, Next's intervention comes with a notable caveat: the retail behemoth plans to retain only three of the brand's prime retail locations.
The stores set to continue under Next's ownership are situated in Chelsea, Mayfair, and the Bluewater Shopping Centre. These flagship sites are considered key assets due to their premium locations and strong customer footfall.
Uncertainty for the Majority of Outlets
The fate of the remaining 33 Russell & Bromley stores and the nine concessions now hangs in the balance. Administrators from Interpath Advisory have been appointed to manage the process and are actively exploring options for these outlets. In the interim, all stores will continue to trade as usual, providing some stability for staff and customers.
This selective approach highlights Next's strategy of focusing on the most profitable and strategically valuable parts of the acquired business, rather than taking on the entire estate. The move raises questions about the future of high street retail spaces and the evolving nature of brand preservation in the modern marketplace.
The acquisition underscores Next's ongoing expansion into the luxury and footwear segments, following similar strategic purchases in recent years. For Russell & Bromley, while the brand's heritage and intellectual property have been secured, the immediate future for a significant portion of its physical presence remains unclear, pending the administrators' findings and potential buyer interest.
