Next Steps In to Rescue Historic Footwear Brand Russell & Bromley
In a significant move within the UK retail sector, the fashion and homeware giant Next has acquired the renowned footwear brand Russell & Bromley out of administration for a sum of £3.8 million. This strategic purchase, however, comes with a sobering human cost, as it is anticipated that around 400 jobs will be lost across 33 stores that are not part of the rescue package.
Details of the Acquisition and Its Impact
The deal, which includes the Russell & Bromley brand name and other key assets such as £1.3 million worth of existing stock, marks the latest expansion of Next's diverse brand portfolio. Under the terms of the agreement, Next will take control of only three specific retail locations: the stores situated in Chelsea, Mayfair, and the Bluewater Shopping Centre. Approximately 48 store staff from these outlets are expected to be retained as part of the transition.
Russell & Bromley, a cherished British institution founded back in 1879 in Eastbourne, East Sussex, currently operates from a network of 36 standalone stores and nine concessions spread across the United Kingdom and Ireland. The remaining 33 stores and all nine concessions, which are not included in this acquisition, will continue to trade under the supervision of administrators as they evaluate future options.
Strategic Vision and Statements from Key Figures
In an official statement, Next articulated its commitment to preserving the legacy of Russell & Bromley, stating: "This acquisition secures the future of a much-loved British footwear brand. Next 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."
Andrew Bromley, the Chief Executive of the previously family-owned business, commented on the difficult decision: "Following a strategic review with external advisers, we have taken the difficult decision to sell the Russell & Bromley brand. This is the best route to secure the future for the brand, and we would like to thank our staff, suppliers, partners and customers for their support throughout our history."
Will Wright, head of Interpath Advisory which is acting as administrator, provided further insight: "Across its 147-year history, Russell & Bromley has been at the forefront of contemporary style. 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. Our intention is to continue to trade the remaining portfolio of stores for as long as we can, while we explore the options available."
Broader Context in Next's Expansion Strategy
This acquisition is part of Next's ongoing strategy to diversify and strengthen its market position through brand acquisitions. The retailer now oversees a wide array of labels, including popular names such as FatFace, Joules, and Made.com, alongside handling the UK distribution for international brands like Gap and Victoria's Secret. This move follows Next's recent announcement of expected profits exceeding £1.1 billion, buoyed by strong festive sales performance.
The rescue of Russell & Bromley highlights the volatile nature of the retail industry, where even long-established brands can face financial distress, necessitating intervention from larger entities to ensure their survival in an increasingly competitive market.
