Fears are mounting for the future of numerous Russell & Bromley shoe stores following the brand’s recent sale. The popular fashion retailer Next has acquired the brand name and certain assets, excluding its 33 stores and nine concessions in the UK and Ireland, which employ approximately 400 individuals.
Established in 1879 in Eastbourne, East Sussex, Russell & Bromley is a longstanding British brand. However, the company has faced challenges in a competitive market, experiencing declining sales and increasing losses.
The sale to Next was facilitated through a pre-pack insolvency process managed by Interpath, an advisory firm brought in to explore options and support a five-year turnaround plan led by CEO Andrew Bromley, a member of the founding family.
Interpath has disclosed that Next will take ownership of the Russell & Bromley brand, intellectual property, and three specific stores in Chelsea, Mayfair, and the Bluewater Shopping Centre under a licensing agreement. The deal for the brand and IP is valued at £2.5 million, with Next also paying £1.3 million for existing stock. Additionally, around 40 employees will transition to Next.
Andrew Bromley expressed, “After a thorough strategic assessment with external consultants, we have made the tough decision to sell the Russell & Bromley brand to secure its future. We extend our gratitude to our staff, suppliers, partners, and loyal customers for their support over the years.”
While the transaction does not include 33 stores and nine concessions, they will continue operating as the administrators explore potential options for their future. Possibilities range from closure to potential management by another entity, potentially Next, and the store owners.
Will Wright, UK CEO of Interpath, stated, “With a rich 147-year history, Russell & Bromley has been synonymous with contemporary style. We are pleased to have finalized this deal to uphold the brand’s legacy and commitment to quality craftsmanship.”
Next emphasized, “This acquisition safeguards the future of the beloved British footwear brand. We aim to build on its heritage, providing operational stability and expertise to support Russell & Bromley’s ongoing success in delivering premium footwear and accessories.”
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